Expanding debt relief to support the agricultural sector
In addition to the small-debtor debt relief programme, the Finance Ministry is preparing to launch a parallel scheme for the agricultural sector, which faces different debt conditions — particularly seasonal debts affected by floods, droughts, and fluctuating crop prices.
The agricultural debt scheme will be implemented through the Bank for Agriculture and Agricultural Cooperatives (BAAC), which plans to establish an in-house Asset Management Company (AMC) to manage debt restructuring tailored to farmers’ needs. Agricultural debt, which differs in nature from typical household debt, will be handled under this smaller-scale programme, with total funding under 10 billion…