Rawhide traders get more time to clear default loans

Bangladesh Bank has relaxed loan rescheduling rules for rawhide traders to ensure availability of sufficient funds during Eid-ul-Azha, which is celebrated through animal sacrifice.

The Eid, which is due to be observed on July 10, accounts for around half of the rawhide the country generates annually.

A good number of rawhide traders have become loan defaulters as a part of the economic fallouts of the pandemic, Russia-Ukraine war and recent floods in the country's northern-eastern region.

A BB notice on Thursday said the rescheduling can be availed through a 2 per cent down payment on outstanding loans and the facility can be availed until August 31.

Businesses, which earlier put up the required collateral with banks to manage loans, will be permitted to enjoy the facility.

Those that did not can avail the support by showing that they have a sufficient amount of rawhide at their repositories.

Rawhide traders will be able to get new loans from banks on regularising their non-performing loans. Banks, however, can consider offering new loans based on their relationship with the customers concerned.

Md Shakawat Ullah, general secretary of the Bangladesh Tanners Association, said associations of rawhide traders had set a target to collect around one crore animal skins this Eid.

According to the Ministry of Fisheries and Livestock, 1.21 crore animals could be sacrificed in the country this year.