BB mounts multi-layer watch on farm loans

The central bank has put in place a three-tier monitoring system to
ensure a proper distribution of Tk 12 ,000 crore in farm loans
across the county. "Apart from BB's monitoring, the respective banks
will also monitor their own distribution," said Bangladesh Bank
Governor Atiur Rahman at a discussion meeting with reporters at the
central bank's Rajshahi office yesterday. "We are also training 80 new
officials. With the completion of their training, the officials will
spread across the country and monitor the distribution for 15 days,"
Rahman said. BB has asked all banks to record the mobile numbers of
farmers who will be given loans so that the monitoring staff can
contact them easily about loan distribution. Rahman said the latest
policy has set the target for agricultural loans 25 percent higher
at Tk 12 , 000 crore. "It's a big jump and it includes Tk 500 crore
for distribution among sharecroppers. So, we are keen to ensure
proper distribution." The central bank chief observed that it is not
possible to drive economic growth without boosting agriculture. "If
agro-based industries and SMEs (small and medium enterprises)
flourish, Rajshahi region will a big driving force for the economy,"
Rahman said. "Lack of gas and power is hindering the growth of
industries in Rajshahi, but the region has fertile lands where lies
the potential for agro- based industries." "If the banks agree to
provide loans to silk- based SMEs, the central bank will provide funds
at a 5 percent interest rate," Rahman said. "Based on the
agriculture and remittance, we are now proud of a reserve of over $9
billion, and the reserve is likely to reach $10 billion at any time
now." He described the role of banks and said Bangladesh like four
other countries are surviving recession because of the stability of
banks. Sardar M Shahjahan, BB Rajshahi branch general manager, and
DGM AFM Asaduzzaman were among others who were present with the
governor.