Dhaka, Bangladesh, Aug. 28 -- The government is set to issue a guarantee against a BDT10-billion central bank refinancing scheme to aid farm credit disbursements by Bangladesh Krishi Bank (BKB).

The Bangladesh Bank (BB) has already sanctioned the recapitalisation loan to the state-owned specialised bank.

Financial Institutions Division (FID) of the Ministry of Finance has sent a summary note to finance ministry, seeking steps to this end, according to officials.

The central bank lends at 5.0 per cent interest rate, but the banks in most cases add 3.0-4.0 per cent to the rate based on sectors while disbursing the loans.

"Our agriculture credit disbursements will be expedited further if the government issues a guarantee," BKB managing d...