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sharecroppers in 160 upazilas through nongovernmental organisation
Brac. Bangladesh Bank Governor Dr Atiur Rahman said: "We are to
introduce the programme next season and the central bank board has
approved Tk 500 crore in principle for this purpose." The governor
said Brac would form small groups of sharecroppers, train them and
distribute the loans. The loans will be disbursed at a 10 percent
interest rate. Regions that are lagging behind in terms of
development would be prioritised in receiving the loans. Rahman
fulfilled 100 days in office as the central bank chief. On the
occasion, he took questions from reporters on the issues ranging
from his accomplishments to future plans. On loan defaults, Atiur said
coordinated efforts are required to retrieve bad loans: Sick
industries and wilful defaulters will have to be identified. The
governor added that the government should form a committee, which
would decide upon the action to be taken against loan defaulters.
Rahman also said the definition of loan defaults should be changed.
The government is yet to pass an ordinance of the past caretaker
government in parliament to redefine loan loans and reform the
banking sector. "We have written a letter to the government about
it. We hope the government would take steps soon." He mentioned that
the finance minister had earlier said the wholesale loan defaults
would be rescheduled. He said he would soon meet the finance
minister to discuss these issues. The central bank governor said he
sat in talks with the prime minister and the finance minister on a
separate pay-scale for the central bank. He is optimistic that the
plan would get through. The central bank is set to provide loans for
large investors and exporters from its foreign currency reserve,
under a special arrangement, in an effort to fuel investment. Rahman
said the central bank is going to take steps to utilise the excess
liquidity and foreign currency reserve to increase investment. The
government should immediately take steps to implement a 500- megawatt
power project with its own resources, instead of looking for donor
assistance, the governor told reporters. According to statistics, the
foreign currency reserve touched an all-time high of $8.05 billion
yesterday. On the other hand, excess liquidity with commercial banks
on June 30 was Tk 34 ,762 crore, also a new high in the history of
banks in the country. The presence of vast excess liquidity points to
a gloomy investment climate. A central bank report said import
expenditure decreased substantially, in comparison to export earnings
and remittance and the excess liquidity was because of a presence of
more foreign currency in the market. The BB governor said: "We are
taking several steps to expedite investment. We will extend loans
through the banks under special arrangements to the big investors who
otherwise take term-loans from outside." He said investors could take
loans from the banks that have offshore branches and the rate of
interest would also be low.
