Bangladesh Bank (BB) has directed all scheduled banks to ensure adequate working capital support for rawhide traders ahead of Eid-ul-Azha in a bid to strengthen the country’s leather sector and prevent wastage of a valuable export-oriented resource.
In a circular issued yesterday, the central bank described the leather industry as a promising sector that contributes significantly to economic growth, employment generation, foreign exchange earnings, and value addition.
BB noted that nearly half of the raw materials used annually in the leather industry come from the hides of sacrificial animals collected during Eid-ul-Azha.
With the festival approaching, the central bank said sufficient financing for traders is essential for the proper collection, preservation, and marketing of rawhides, which it termed a national resource.
Banks have been instructed to sanction and disburse working capital loans to eligible traders based on banker-customer relationships and in line with existing regulations.
The circular also asked banks to ensure fair distribution of loans so that grassroots-level rawhide collectors can access the funds.
As part of a relaxation measure, BB said banks will not be required to realise the compromised amount of previously rescheduled loans from traders until June 30, 2026, while providing fresh credit for rawhide purchases related to this year’s Eid.
- Md. Saiful Islam Journalisthttps://thebusinessin.com/author/saifuljournalist/
- Md. Saiful Islam Journalisthttps://thebusinessin.com/author/saifuljournalist/
- Md. Saiful Islam Journalisthttps://thebusinessin.com/author/saifuljournalist/
- Md. Saiful Islam Journalisthttps://thebusinessin.com/author/saifuljournalist/
