Procurement News Notice |
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| PNN | 23 |
| Work Detail | The livestock department will sit with the central bank authority soon to find ways of preventing misuse of low-cost loans meant for milk and meat production under refinancing scheme, a senior official said. The Department of Livestock Services under the ministry of fisheries and livestock (MoFL) has already requested the Bangladesh Bank (BB) to take measures for making its refinancing scheme more effective. The government in January started distributing Tk 2.0 billion loan or refinancing scheme of the central bank at 5.0 per cent interest rate to help boost the country's milk and meat production, which will reduce nutritional deficiency in the country. The BB set up the fund in June 2015 to encourage dairy farming and cut malnutrition and milk powder import bills. The idea was to create self-employment, while building a modern dairy industry in the country. The move came after allegations the poor and needy persons were being deprived of getting such loan. And so far the number of recipients of the loans is not significant, an official of the DLS said. Prime Minister Sheikh Hasina inaugurated the initiative by handing over cheques to 13 dairy farmers during an event at the Krishibid Institution in the capital in January last. At present, 12 commercial banks and one financial institution have been disbursing loan at 5.0 per cent interest to the dairy farmers. Under the project, the farmers will get loans of Tk 50,000-Tk 200,000 from banks. They will have to repay within four and a half years. Farmers can borrow Tk 50,000 for one heifer capable of reproducing within three months and take maximum Tk 200,000 in loan for four heifers for milk production. Applications for buying the indigenous species will get priority. The annual production of milk is almost half the country's total requirement. Bangladesh produced 6.96 billion (696.85 crore) litres of milk during the fiscal year (FY) 2014-5, up 14.3 per cent year on year, according to the DLS. The country spends nearly Tk 40 billion annually for importing milk to meet local demand. The loan facility will allow at least 10,000 farmers to get cheap loans, according the BB. The marginalised farmers, especially women, will get priority in getting loans. The upazila livestock officials are responsible for overseeing the process to ensure proper use of the money on the borrowers' part. "We have requested the BB to ask the commercial banks for strict monitoring making sure that right persons get the loans," director general of the DLS Ajay Kumar Ray told the FE. The BB will sit with the commercial banks, local administration and the DLS officials shortly to find out ways so that deserving persons get the loan, he said. Mr Roy said that the success of the project means success of the government and happiness of the country's people. If the project is successful, then it will help develop milk processing industry, diversifying into milk products like butter, ghee and cheese. The annual milk production in the country is over 7.2 million tones, which is fall short to total demand. Strengthening joint monitoring of officials of DLS and commercial banks could prevent fake persons from getting the loans. The MoFL will discuss the issue during the upcoming monthly coordination meeting on 30th August, and ask the officials of DLS and banks to strengthen monitoring of the project, according to the ministry officials. |
| Country | Bangladesh , Southern Asia |
| Industry | Financial Services |
| Entry Date | 02 Sep 2016 |
| Source | http://www.thefinancialexpress-bd.com/2016/08/27/43622/Move-to-improve-%E2%80%98right%E2%80%99-targeting-of-BB-refinancing-loan |
