Bangladesh Bank has launched a Tk 30 billion refinancing fund to support agricultural development and establish specialised agro-economic centres in northern Bangladesh.
The central bank announced the fund's policy guidelines on Monday, saying loans under the scheme will be available at a maximum interest rate of 9 percent.
The initiative is part of the Tk 600 billion package announced by Governor Mostaqur Rahman on May 23 to revive the economy, including the reopening of closed factories, according to bdnews24.com.
According to the policy, the Tk 30 billion refinancing fund has been created to promote agriculture-based special economic centres in the Rajshahi and Rangpur divisions, which have been designated as the geographical coverage of the scheme.
The guidelines describe the northern region as one of Bangladesh's leading agricultural production hubs but note that its full economic potential has not been realised due to limited post-harvest management and marketing infrastructure, a shortage of specialised cold storage facilities, inadequate processing industries and restricted access to supply chains.
The central bank said these constraints have negatively affected the country's overall economy.
The fund will be financed through surplus liquidity held by scheduled banks and managed by Bangladesh Bank.
Its objectives include increasing agricultural production; expanding marketing, storage, processing, value addition and infrastructure; supporting the development of agriculture-based cottage, micro, small and medium enterprises (CMSMEs) and agro-industries; improving the production, processing and supply chains of export-oriented agricultural products; and boosting rural employment and incomes.
Under the allocation plan, 15 percent of the fund has been earmarked for agricultural production, 35 percent for agricultural storage, transport, marketing infrastructure and logistics, another 35 percent for agro-based manufacturing, processing and marketing industries, and the remaining 15 percent for agricultural and agro-based exports.
