The New Nation - Internet Edition

BSS, Sherpur

Bangladesh Bank (BB) Governor Dr Atiur Rahman on Thursday said the GDP (gross domestic product) growth would be at least 6 percent in the current 2009-10 fiscal year.

He made the forecast at a function in Sherpur district where he launched a credit programme for marginal farmers.

His prediction dispelled the gloomy forecast made recently by the International Monetary (IMF). An IMF mission last month projected a GDP growth of less than 6 per cent for the current financial year.

Finance Minister Abul Maal Abdul Muhith, however, instantly dismissed the IMF projection saying the growth would be higher as the economy was going on the right track.

Citing some major developments in the country's economy, the central bank governor substantiated the projection.

He said the foreign exchange reserves on Wednesday crossed $10 billion dollars for the first time in the country's history. The crop production also showed a steady growth when the business and investment climate were improving.

Atiur said the central bank was endeavouring some major programmes towards boosting the growth in agriculture and investment.

He reiterated his commitment as an economist and the chief of the central bank to the farmers who contribute much to the country's economy.

Atiur said the farmers would get continuous support from the banking system in achieving food security and making the country self-reliant.

Hundreds of sharecroppers in Sherpur district on Thursday got loans from the banking system for the first time in their life.

Bangladesh Krishi Bank (BKB) disbursed the loan to the cash- strapped farmers who usually do not qualify for any credit from commercial banks.

The sharecroppers who got the loan never thought before of getting money from banks because of their inability to provide any mortgage against their loans.

The BB's initiative not only surprised the hundreds of sharecroppers of the district, but also renewed their dream of the days when they would be able to have enough food to enjoy happy meals with family.

The BKB disbursed Taka 1.91 crore among 603 farmers in Sherpur Sadar, Langarpara and Chikundi of the district. The loans at very low rate of interest will enable the sharecroppers to grow crops and establish small farms like fisheries and poultry.

The central bank for the first time allocated a fund of Taka 500 crore for sharecroppers. The BRAC, under an agreement with the central bank, would provide around 500,000 out of over 7,000,000 sharecroppers with such loan in 160 upazilas across the country.

The BRAC will borrow funds from the central bank under the refinancing scheme at 5 percent interest and distribute collateral-free loans to sharecroppers at 10 percent.

The central bank has also set a three-tier monitoring system to ensure distribution of such loans to the real sharecroppers. The BB will also assess the overall performance of the scheme in the middle of next year to take a decision on expansion of the scheme.

The sharecroppers, who have never been given loan from banks and do not have a secondary school certificate and more than two acres of land for farming, will get the loan facility.