AGRIC. CREDIT II

closed

This project proposes to support the lending activities of the Bank for Agriculture and Agricultural Cooperatives over a two year period to enhance the functioning of rural financial markets. The type of activities eligible for financing would be broadly based and include medium- and long-term agricultural lending countrywide and short-term lending for a pilot scheme in the North and Northeast, which intends to provide credit/extension packages to small farmers. Jointly financed with IFAD, the Bank loan aims to finance term lending countrywide, while IFAD funds would be restricted to financing term lending in the North and Northeast to small farmers engaged in food production and short-term lending under the pilot scheme. Providing additional resources to BAAC through this project, would boost the level of economic activity in rural areas and thereby contribute towards employment generation, poverty alleviation and increased rural production.