April 22, 2009

Bangladesh's banks to reschedule poultry loans without down payment

The central bank of Bangladesh on Monday (Apr 20) asked eight state-owned commercial banks and financial institutes to reschedule classified loans outstanding with poultry farmers without any down payment, officials said.


The banks and financial institutions were instructed that the poultry sector loans will be treated as agricultural sub-sector credit instead of commercial loans.


The Bangladesh Poultry Industries Association (BPIA) welcomed the move, saying that the measure will greatly help the bird-flu stricken poultry sector.


The interest rates of loans for the poultry sector will be lower as the sector has been recognised as an agricultural sub-sector instead of commercial, said a senior official of the Bangladesh Bank, the country's central bank.


Under the new provisions, the interest rates will come down to 8-11 percent from the current 13-14 percent, market operators said.

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