Forty per cent of the Tk 5,000-crore refinance scheme set up for farmers has remained unimplemented nine months after formation of the fund by the central bank amid poor disbursement by a number of banks.
Due to dismal disbursement, the central bank extended the implementation deadline in two phases by six months to March 31, 2021.
The latest Bangladesh Bank data showed that the disbursement of loans under the stimulus package to the farmers reached Tk 3,464.92 crore as of January 31, 2021.
Under the stimulus package, the BB data showed that 1,46,118 individuals had received financial support from 43 banks.
The remaining Tk 1,535.08 crore from the package needs to be disbursed in two months.
The central bank on April 13, 2020 launched the stimulus package that allowed the farmers to receive loans from the banks for 18 months, including a six-month grace period.
The applicable interest rate on the farmers was set at 4 per cent as the BB has been disbursing funds at the rate of 1 per cent to the banks in this regard.
The BB data showed that the disbursement of loans to the farmers from the government refinance scheme by 15 banks was below 30 per cent at the end of January.
The banks with less than 30 per cent implementation of the scheme are: BASIC Bank, Al-Arafah Islami Bank, Bangladesh Commerce Bank, Dhaka Bank, First Security Islami Bank, IFIC Bank, Mutual Trust Bank, Global Islami Bank, Social Islami Bank, South Bangla Agriculture and Commerce Bank, Southeast Bank, Standard Bank, Trust Bank, Union Bank and Jamuna Bank.
On the other hand, implementation of the refinance scheme by five banks had reached above 90 per cent at the end of January.
These banks are Bangladesh Krishi Bank, Rajshahi Krishi Unnayan Bank, AB Bank, Modhumoti Bank and Shahjalal Islami Bank.
In terms of amount, Bangladesh Krishi Bank disbursed the highest Tk 1,585.51 crore among 79,904 farmers against its Tk 1,699-crore loan disbursement target.
Rajshahi Krishi Unnayan Bank came in second by disbursing Tk 399.93 crore among 8,780 individuals against its Tk 816-crore disbursement target.
Islami Bank Bangladesh disbursed the third highest Tk 274.38 crore among 10,317 farmers against its Tk 400crore disbursement target.