Bangladesh Bank on Thursday announced a new 'Agricultural  and Rural Credit' disbursement policy with the target of disbursing Tk 38,000 crore loan for the fiscal year 2024-25 to ensure food security in the country.

The loan target is 8.57 percent higher than that of FY 2023-24.

Against the target of Tk 35,000 crore set in the last financial year FY 2023-24, the banks distributed agricultural and rural loans of Tk 37,153,90 crore which is Tk 4,324.01 crore more from the 32,829.89 crore distributed in the previous fiscal year 2022-2023 or 13.17 percent more.

The central bank Governor,  Dr Ahsan H Mansur, in a press conference at Jahangir Alam Conférence hall in the central bank headquarters unveiled the agricultural and rural credit disbursement policy for FY2024-25.

The target for state owned and specialised banks has been set at Tk12615 crore, while foreign and private sector banks have been given  a target of Tk 25,385 crore.

The governor said that considering the importance of adequate credit flow in the agricultural sector to achieve GDP growth through increasing agricultural production in the country and controlling inflation, the central bank has set a target of Tk 38,000 crore for agricultural and rural credit distribution in the current financial year.

"In order to distribute adequate loans at low interest rates under the Agricultural and Rural Credit Policy, the local private banks are required to disburse at least 50 percent of the target through their own network and compulsorily 60 percent of the target to the crops and crops sector, 13 percent to the fisheries sector and 15 percent to the livestock sector," said Dr Mansur.

Deputy Governors, head of different departments of the central bank, Managing Director (MD) and representatives from all banks were present.