The New Nation - Internet Edition

UNB, Dhaka

Bangladesh Bank has convened a series of meetings with commercial banks and NGOs to devise appropriate mechanism for providing loans to the Sidr-hit people so they could restart their economic life.

"The meetings are to identify the problems of delivering financial intervention into the economic activities, particularly the unconventional ones," a senior central bank official told UNB.

He said the meetings would be a follow up of Bangladesh Bank Governor Dr Salehuddin Ahmed's visit to Barisal and Khulna last week when he exchanged views with commercial bank executives of the areas.

During the exchanges, the bankers apprised the Governor of inadequate branch networking as well as lack of lending programmes suitable for unconventional activities and businesses like fishermen.

The Governor in a post-visit press briefing on Wednesday said Bangladesh Bank is contemplating various options to devise suitable lending programmes for the Sidr-hit people on as easy as possible terms, even at zero interest, to rejuvenate the battered economic activities.

The official said the central bank would start the series of meetings with NGOs on December 11 at Bangladesh Bank, followed by nationalised and specialised commercial banks on December 17 and private banks on the following day.

The meetings will discuss the possible options and the problems likely to emerge at the field level and decide appropriate strategy.

On December 19, the Bangladesh Bank Governor is scheduled to hold a press briefing to disclose the outcome of the series of meetings.

The central bank was preparing a proposal for submission at the appropriate places for necessary decision in this regard.

The policy options will take into account the financial involvement against waiver of interest and principal against the previous loans as well as subsidy for low interest or zero interest lending.

Bangladesh Bank, however, will ensure that the hard-earned financial discipline is not affected by the possible setbacks of aggressive lending.

The central bank governor, during his visit to Barisal and Khulna, advised the commercial banks operating in the southwestern districts to go for aggressive lending to help revive the economic activities.

He asked them to disburse 70-80 percent of their respective yearly targets for agriculture loan by December-January on easy terms.