BB launches Tk 10b refinancing scheme

the Bangladesh Bank (BB) has initiated a refinancing program worth Tk 10 billion with the goal of reducing the country's dependence on the importation of wheat and maize by encouraging local production of the food grains.

According to a notification released by the BB on Thursday, lenders can get cash from the central bank at 0.50 percent while farmers can access low-cost funds by paying up to 4.0% interest under the program.

Landless farmers, small and marginal farmers, and sharecroppers who possess between 0.494 and 2.47 acres of land are all eligible to apply for loans up to Tk 0.20 million without putting up any security.

But the farmers won't be permitted to replace their old loans with new ones under the scheme, the BB noted.

The loan's lifespan will finish on June 30, 2025, and the money will come from the central bank's own treasury.

Within 10 days of receiving the information, scheduled banks who are interested must sign participating agreements with the BB Agricultural Credit Department.

The most recent action by the BB was made in response to an increase in cereal demand. The items will be supplied to the domestic market more easily as a result.

The amount of wheat that Bangladesh is currently able to produce each year is about 1.10 million tonnes, while approximately 6.50 million tonnes are imported to satisfy the rising local demand for the grains.

On the other hand, although about 2.5 million tonnes of maize are imported on the same land, the nation can produce about 4.50 million tonnes of the crop.