In Summary
The amount was issued during the Memorandum of
Understanding (MoU) signing ceremonies held at the Ministry of Finance and
Planning. The ministry's Deputy Permanent Secretary, Mr Khatibu Kazungu, said
they had sourced the cash from the African Development Bank in form of a soft
loan.
Dar es Salaam. The government has on Monday given Sh209.5 billion to
Tanzania Agricultural Development Bank (TADB) to increase the bank's capacity
in lending.
The
amount was issued during the Memorandum of Understanding (MoU) signing
ceremonies held at the Ministry of Finance and Planning. The ministry's Deputy
Permanent Secretary, Mr Khatibu Kazungu, said they had sourced the cash from
the African Development Bank in form of a soft loan.
"We
have received a soft loan at an interest rate of 0.75 per cent so as to support
the development of the agricultural sector through increasing loans to
farmers," noted Dr Kazungu.
The
loan from the African Development Bank will have to be paid in 40 years, with
the first 10 years being a grace period.
The
TADB Acting Managing Director, Mr Francis Assenga, commended the government's
support, saying it would prompt the bank to start issuing middle and long term
loans to its clients.
Currently
due to the capital challenge, according to him, the bank issues only short term
loans to its customers at an interest rate of between eight and 12 per cents.
Since
the bank’s establishment in the late 2015, Mr Assenga noted, about 3,700
customers have accessed loans from the bank.
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