Business News

TANNERS TO GET TK 655CR IN LOAN TO BUY RAWHIDE

Four state-owned banks would provide 23 entities with credit facility worth around Tk 655 crore for purchasing rawhide on the eve of Eid-ul-Azha, the biggest supply season of the item. Top executives of the banks — Sonali, Rupali, Agrani and Janata — told New Age that they would provide leather businesses loan facility for ensuring collation of maximum amount of rawhide, a major export item. They also said that they traders would get loans at the rate of 9 per cent interest for purchasing rawhide. Of the banks, Rupali Bank would provide highest Tk 250 crore, Janata Tk 200 crore, Agrani Tk 135 crore and Sonali rest Tk 70 crore.

However, the disbursement of the loans might vary due to the existing state of loans repayment by the entities which received loan facility last year. Agrani Bank managing director Mohammad Shams-Ul Islam told New Age that the entity has decided to issue Tk 135 crore loans to 6 entities for purchasing rawhide on the eve of Eid-ul-Azha. Agrani disbursed Tk 105 crore to four entities in this regard last year, he said.

Mentioned 75 per cent recovery rate of those loans, Hamid said, adding that the bank would disburse loans based on the repayment ratio of the entities. The country’s export of leather and leather goods constitutes worth around $1 billion. Leather businesses collect 50 per cent of their annual requirement during Eid-ul-Azha.

Janata Bank would disburse Tk 200 crore fresh loans to 10 entities in this Eid for purchasing rawhide, said its managing director Md Abdus Salam Azad, adding that they would charge 9 per cent interest against such loans. Besides, Janata Bank would reschedule loans worth Tk 1,105 crore which were issued for purchasing rawhide in the previous years. Sonali Bank managing director Md Obayed Ullah Al Masud told New Age, ‘We have sanctioned Tk 70 crore in loans for three entities this Eid for purchasing rawhide as like the previous year.’ However, disbursement of loans to two entities out of the three would depend upon repayment of their outstanding loans, he said. Another state owned entity, Rupali Bank would disburse around Tk 250 crore this year for purchasing the essential raw element for the export of leather and leather goods to four entities. Besides the state-owned banks, several private commercial banks were also issuing credit facility to their customers in this regard.

Source: New Age, 07.08.2019

Link: http://www.newagebd.net/article/80915/tanners-to-get-tk-655cr-in-loan-to-buy-rawhide



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