At a time when the leather and leather goods sector in Bangladesh is facing some tough challenges on account of COVID-19 and falling demand for leather and leather products amongst global buyers, the country’s central bank, the Bangladesh Bank (BB), has allowed those in the business of raw hides, to reschedule existing loans to 6 years and term loans to maximum 8 years, with one year’s grace period.
The central bank has recently given a directive to this end to all commercial banks which would now allow leather traders to reschedule loans that they have defaulted on after paying a down payment of 2 per cent.
Further, they can now avail new loans to procure raw hides during the upcoming Eid-ul Azha.
The Bangladesh Bank sent letters to Chief Executives Officers and Managing Directors of all banks on Sunday in this direction.
However, to avail the rescheduling facility, entrepreneurs would have to apply to their concerned banks to reschedule the defaulted loans.