Banks asked for progress report on farm loan

The central bank has directed the scheduled banks concerned to submit
progress report on disbursement of farm loan every month with the
first one on November 15. Bangladesh Bank (BB) asked for this report
to make it sure that farmers get adequate bank loans when they really
need it, official sources said yesterday. Earlier, the BB formed a
three-tier monitoring cell to watch over the disbursement of
agriculture loans. A BB official said the monitoring cell will review
the monthly report and take necessary steps to keep the credit system
on track. Such loan disbursement began on October 1 , prior to the
Boro season, aimed at boosting the country's agriculture sector,
revitalising the rural economy and achieving food security. The
government in the national budget for the current 2009- 10 fiscal
year allocated Tk 11 ,500 crore--the highest-ever loan to the
sector. The loan facility will cover all major sub- sectors of the
agro industries, including crop production, fisheries, livestock and
poultry farming.