Bangladesh: Banks reluctant to lend to tanners as de - leatherbiz: Lea Leatherbiz

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Bangladesh: Banks reluctant to lend to tanners as defaults rise

10/10/2013
The central bank of Bangladesh has advised commercial banks to be cautious about lending to the leather sector, after a rapid rise in bank defaults, according to local press.

The Financial Express reported four state-owned commercial banks have provided $193 million in loans to 135 tanneries up to July this year. Defaults stood at about $130 million.

Tanneries are coming under strain as they cannot afford to preserve the raw hides that have been purchased. They have sought $60 million from banks to buy the skins of sacrificial animals during the upcoming Eid-ul Adha festival (October 14 and 15) when about half the year’s stocks are generally purchased.





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