JESSORE. Oct 9: Jessore Cooperative Land Mortgage Bank is facing serious fund crisis as the number of defaulters continue to Increase. The loanees were repeatedly reminded to repay the money worth over Taka one crore which is outstanding till last fiscal, said a source of the bank.

According to information, total arrears on account of loan distributed, amounted to Taka 94 lakh 56 thousand up to June last this. It was also learnt that 10 certificate cases filed for recovery of the loans worth taka one lakh, was still pending with the court. Meanwhile. all formalities were completed for sake of mortgaged property in auction to recover Taka three lakh from 17 loanees.

The source said. Taka 15 lakh was distributed to 215 people during last year and the recovery rate was unsatisfactory In the same year. The bank recovered only Taka 20 lakh.

It was learnt from the same source that the fund crisis was mounting due to failure of the Bank to realize loans.

According to another re port, nearly 10 lakh members of co-operative societies in 10 districts of Khulna Division re portedly have been crippled down following suspension of loan grant by the branches of co-operative bank for the las' four years.

According to information Central Co-operative Bank dis tributed loans received from Bangladesh Bank to its agricul ture members of Primary Co operative Societies

It's rate of interest compar atively in simple and lower than any other banks and money-lending organisations including NGOs There is no denying the fact that this con cession offered by co operative banks has encouraged poor agriculture-members to take more loans.

Rate of interest in all banks are now equal since start of the current fiscal Yet the cooperative banks follow simple rate in greater interest on poor loanees.

This has been the main cause of the Co-operative Ban ks to suspend the loan issue otherwise deepening financial Crisis of poor co-operators