Bangladesh: tanners try to ensure ample loans in Eid-ul-Azha
Tanners in Bangladesh have expressed apprehension of not getting their expected amount of loans from the state-owned banks in the upcoming Eid-ul-Azha, the Financial Express has reported.
Tanners told the newspaper that they have applied for approximately $52 million in loans from public sector banks to procure raw hide and skin during the peak season.
“We came to know that we might get $26 million this year, which is just half of our expectation,” said Belal Hossain, president of the Bangladesh Finished Leather, Leather Goods and Footwear Exporters Association (BFLLGFEA).
Mr Belal said: “Banks will scrutinise our export performance and accordingly take decisions of distributing loans.”
The state-owned banks provide loans at low interest to the tanners for purchasing raw hide and skin during the Eid-ul-Azha, which accounts for more than 40% of their annual leather procurement. These banks account for about 90% of the total loan given to the leather sector during the Eid-ul-Azha.
Shamsul Huda, president of the Bangladesh Tanners Association, said: “We’re still optimistic that the banks will disburse loans as per our requirement.”
