Bangladesh’s central bank creates 500-mln-USD refinance scheme for food security
DHAKA — Bangladesh Bank (BB) has worked out a 50 billion taka (about 500 million U.S. dollars) refinance scheme to ensure food security in the country as the banking regulator anticipates a possible global food crisis in the near future, said a BB circular issued here on Thursday.
The prices of several food items have gone up in the global market, which is why the central bank has created the fund for farmers to get low-cost loans.
Under the scheme, the farmers will be able to take loans at an interest rate of 4 percent.
Banks will be allowed to take loans at an interest rate of 0.5 percent from the fund, meaning that they will enjoy an interest margin of 3.5 percent after disbursing the fund to the farmers.
Small marginal farmers can take a single collateral-free loan up to a maximum of 2 lakh taka (about 25,548 dollars) for the cultivation of crops including rice, vegetables and fruits. (Xinhua)