Bangladesh’s national banks allocated special loans to tannery owners before the holiday began on February 11, as it is the country’s prime season for trade in raw hides and skins. The loans totaled an estimated Tk1500 million (US$25 million) compared with Tk 800 million (US$30 million) last year.

The four banks provided loans to 400 clients who usually borrow money during the high season to buy and procure raw hides and skins. Those who have repaid previous loans were given preference, and defaulters were not eligible.

More than 65% of the local tannery’s total annual requirements of raw hides and skins are bought during Eid-ul-Azha. If there are any delays in tannery owners receiving the cash, then the export of leather and leather products are ultimately affected.

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