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They are also directed to carry out relief activities
The Bangladesh Bank (BB) on Wednesday asked all scheduled banks to suspend realizing instalments of farm loans in the flood-hit districts until the situation improved in an effort to shore up the battered agricultural sector.
The central bank in a circular also asked banks to disburse fresh loans among the affected farmers at flexible terms so that they could focus on farming after the flood water receded.
The circular of the Agricultural Credit Department of the central bank also called for relaxing payment policy for rescheduling of defaulted farm credit, approving fresh loan for farmers taking into consideration the reality and demand without resorting to any harassment.
In approving fresh credit, banks were directed to prioritize rehabilitation by providing equity for income generation in cattle rearing and poultry farming.
The central bank also directed banks and non-bank financial institutions (NBFIs) to carry out relief activities under their Corporate Social Responsibility (CSR) schemes among the flood-hit farmers across the country.
The major parts of the country have been experiencing flooding that inundated homesteads and farmlands in districts in the east, north, north-west and middle portion, leaving hundreds of people homeless.
The flood caused from incessant rainfall and flash flood from upstream created even more difficult situation for cattle, poultry and fisheries.
The central bank’s instruction to banks came to assist flood-hit people in overcoming hard time they have been passing through.
The BB also directed banks not to file any fresh case (certificate case) against farm loan defaulters, suspend activity of certificate cases and start discussions for recovery of written off loans.
The BB directed them to deploy intense supervision to this effect by banks management at the field level.
Extend charity activity for flood-hit people under CSR funds
In another circular issued by Khondkar Morshed Millat, General Manager of Sustainable Finance Department at the central bank has asked banks and NBFIs to spend their CSR funds to provide food, clothing, pure drinking water, emergency medicines, portable improved cooking stove, solar lantern, Pico home system (Small Solar Home Systems Under 20 watt) among the farmers in the flood-hit areas.
The charity spending of banks and non-bank financial institutions could be adjusted under their CSR funds, the circular adds.
The BB circular mentioned Kurigram, Bogra, Gaibandha, Sirajganj, Sherpur, Jamalpur, Tangail, Faridpur, Shariatpur, Rajbari, Madaripur, Manikganj, Munshiganj, Chandpur, Chattogram, Cox’s Bazar, Bandarban, Khagrachhari, Rangamati, Feni, Brahmanbaria, Nilphamari, Lalmonirhat, Sylhet, Sunamganj, Habiganj, Moulvibazar Netrokona and Kishoreganj as flood-hit districts.
Bangladesh, a lower riparian country, is often prone to flood from heavy downpour during monsoon at low-lying areas and flash flood at the hilly districts from upstream Meghalaya, Assam, Tripura and Mizoram states of India.
Flood causes a huge loss of crops, livestock and fisheries and frequent erosion of river banks in different districts in the country. Homesteads at different localities have also been affected.
This year, the losses from flooding are yet to be assessed.
(DT)
