Loans for raw materials decrease
08/12/2008
Bangladeshi tanners and traders have been told that the loan they usually receive from three state-owned banks at the time of the Eid-ul-Azha festival season (which will last for three days from December 9) will decrease this year.
The livestock population in the country increases for the festival and the loan arrangement has been in place for some time to help tanners and trading organisations buy up the extra supplies of hides and skins that become available as a result.
This year, the three banks—Sonali Bank, Janata Bank Limited and Agrani Bank Limited—will make available a total amount of just over $40 million, 18% less than last year.
The banks have justified offering a lower amount by saying that companies in the leather sector have not yet paid back all the money borrowed in previous years, and by pointing to lower prices of raw materials in the wider market at the moment.
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