The Bangladesh Bank has asked all scheduled banks to suspend realising installments of farm loans in the flood-hit districts until the situation improved in an effort to shore up the battered agricultural sector.
The central bank in a circular on Wednesday (Jul 24) also asked banks to disburse fresh loans among the affected farmers at flexible terms so that they could focus on farming after the flood water receded.
The circular of the Agricultural Credit Department of the central bank also called for relaxing payment policy for rescheduling of defaulted farm credit, approving fresh loan for farmers taking into consideration the reality and demand without resorting to any harassment.
In approving fresh credit, banks were directed to prioritize rehabilitation by providing equity for income generation in cattle rearing and poultry farming.
The central bank also directed banks and non-bank financial institutions (NBFIs) to carry out relief activities under their Corporate Social Responsibility (CSR) schemes among the flood-hit farmers across the country.
The major parts of the country have been experiencing flooding that inundated homesteads and farmlands in districts in the east, north, north-west and middle portion, leaving hundreds of people homeless.
The flood caused from incessant rainfall and flash flood from upstream created even more difficult situation for cattle, poultry and fisheries.
The central bank's instruction to banks came to assist flood-hit people in overcoming hard time they have been passing through.
It also directed banks not to file any fresh case (certificate case) against farm loan defaulters, suspend activity of certificate cases and start discussions for recovery of written off loans.
Banks have been told to deploy intense supervision to this effect by banks management at the field level.