Bangladesh Banks Asked To Provide Cheaper Loans For Fishermen

July 22, 2008 12:23 p.m. EST

Dhaka, Bangladesh (AHN) - The central bank of Bangladesh is expected to advise the commercial banks to provide better and cheaper short term loans to fishermen in its cyclone-affected areas.

The advice may be spelled out on Wednesday at a bankers' meeting to be held at the Bangladesh Bank (BB), the country's central bank, with the BB Governor Salehuddin Ahmed in the chair, officials said on Tuesday.

On November 15, 2007, Cyclone Sidr wreaked havoc in the Sundarbans and adjoining costal areas of southern Bangladesh leaving more than 4,000 people dead or missing and over 50,000 people injured.

"The central bank will advise the banks, particularly private commercial banks, which have no branches in the remote areas, to link up with non-governmental organizations (NGOs) for ensuring financing facilities in the cyclone-hit areas," a BB senior official told AHN in the capital, Dhaka.

The central bank will also advise the banks to provide loans to the fishermen after consultations with local public representatives to minimize credit risks, they added.

"The BB has taken the fresh move aiming to restore normal economic activities in those areas in line with the chief adviser's directive," another BB official said, adding that the meeting will review the overall position of credit, deposit and liquidity situation in the country's banking system.