The Bangladesh Bank has relaxed the policy for rescheduling short-term farm loans as it believes that the global price hike of agricultural equipment may adversely impact the local sector.
The central bank, in a circular on Tuesday, said that import cost soared recently as a result of higher prices of agricultural inputs and transportation cost.
The circular will help entrepreneurs in the farm sector repay their loans smoothly, it also said, adding that it will also keep the credit flow to the agriculture sector stable.
A directive issued by the Banking Regulation and Policy Department (BRPD) recently said that the farmers will be able to reschedule their default loans without any down payment and enjoy a six-month grace period.
It also stated that the tenure for repayment of the rescheduled loans will be three years.
After the rescheduling, the farmers will be eligible to apply for a fresh farm loan.
The farmers who are facing certificate cases will also be allowed to enjoy the relaxation facility after settlement of the cases through mutual agreements.
Prices of agriculture equipment have increased in the global market due to the volatile economic state of the world, which has fuelled the worth of the import items.
