Rawhide traders get two more months to reschedule loans

Bangladesh Bank has given rawhide traders additional two months to reschedule the loans they took last year to purchase rawhide with only 3 per cent down payment.

Earlier on July 13, BB relaxed the loan rescheduling policy for rawhide traders so that they can manage funds from banks smoothly to purchase skins of sacrificial animals during Eid-ul-Azha.

That time rawhide traders were given the relaxed policy until August 31 and the central bank extended the deadline further until October 31.

Many rawhide traders failed to pay back the loans due to the adversity stemming from the coronavirus pandemic, according to a Bangladesh Bank notice in July.

On top of that, the rawhide industry has been facing different problems for years, giving a fatal blow to the businesses to repay the loans.

The merchants will be able to enjoy a repayment tenure of three years to pay back the rescheduled loans.

But, they have to put collaterals against the rescheduled loans.

Along with lands, the unsold rawhides of last year can also be placed as collaterals.

Banks will have to give out new loans to the merchants after rescheduling the default ones.

Four state-owned commercial banks Sonali, Janata, Agrani and Rupali chiefly disburse the major portion of the loans among lenders.

They collectively set a loan disbursement target of Tk 326 crore this year in contrast to Tk 525 crore last year.