Krishi Bank waives Tk604.81cr loans of over 7 lakh farmers
Bangladesh Krishi Bank has waived agricultural loans totalling more than Tk604.81 crore for 709,679 small and marginal farmers under a government programme covering loans of up to Tk10,000.
The initiative was implemented in line with the government's election manifesto and farmer-friendly policy to ease farmers' debt burden, according to a press release.
The bank said its share represented around 39% of the total agricultural loans waived by the government.
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Many farmers had been unable to repay their loans on time because of natural disasters, rising production costs, sluggish market conditions and other financial difficulties. As a result, outstanding principal and accumulated interest continued to rise, leaving many borrowers ineligible for fresh agricultural credit.
Considering the situation, the government decided to waive the principal and accrued interest on agricultural loans of up to Tk10,000.
To implement the decision, Bangladesh Krishi Bank completed nationwide data verification, account reconciliation and other required procedures to identify eligible farmers and bring them under the waiver programme.
The bank said the initiative had relieved a large number of small and marginal farmers of their debt liabilities, allowing them to resume regular banking activities and become eligible for fresh agricultural loans.
Reducing their debt burden is also expected to help farmers return to cultivation with renewed confidence and contribute to higher agricultural production, stronger food security, improved financial capacity and rural economic growth.
Bangladesh Krishi Bank said it disbursed around 63% of the country's agricultural loans.
