Dhaka, Bangladesh (BBN)- The central bank of Bangladesh on Wednesday slashed time limit further for repayment of rice purchasing loan, received by rice millers, to ensure smooth supply of the essential in markets, officials said.
Under the amended rules, the millers will have to repay their rice purchasing loans within 30 days instead of 45 days while the rice traders’ repayment timeframe remained unchanged at 30 days.
Bangladesh Bank (BB) issued a circular in this connection on Wednesday and asked chief executives and managing directors all 47 scheduled banks to re-fix the repayment period for rice purchasing credit, received by the millers.
“We’ve taken the latest move to increase supply of the essential item in the local markets,” a BB senior official said, adding that it will also help to decrease hoarding of rice different parts of the country.
On August 22 last, the central bank set the 45-day repayment period for rice purchasing loan instead of 60 days for the millers, while rice traders must repay their loans within 30 days in lieu of 45 days.
The BB had set the 90-day repayment period for rice purchasing loans on May 12, 2008.
Currently, the millers and traders take advantage of availing loans in the form of cash credit against pledge of rice.
BBN/SI/AD-29Dec10-6:54 pm (BST)
