Bangladesh Bank has officially launched a Tk 10,000 crore (Tk 100 billion) special refinancing scheme aimed at boosting agricultural production and ensuring national food security.
In a circular issued by the Agricultural Credit Department (ACD) on Sunday, the central bank introduced crucial revisions to its initial June 8 guidelines.
The most significant policy shift involves the scheme's funding source. Initially, the central bank planned to utilize foreign currency reserves. Under the new directive, the fund will now be entirely constituted from the surplus liquidity of scheduled domestic banks. This strategic move ensures the program operates strictly with local funds, safeguarding the country's vital foreign exchange reserves.
Additionally, the central bank has shortened the scheme's duration. The new refinancing term is now fixed at three years from the date of the circular's issuance, down from the originally proposed five years. All other provisions from the June 8 circular remain unchanged, and the new guidelines are effective immediately.
By pivoting to domestic liquidity, Bangladesh Bank aims to streamline the refinancing process in a sustainable, reserve-independent manner. This initiative provides critical financial backing to the agricultural sector, which remains the backbone of rural employment and the primary driver of the nation’s food security.
