Tanners tense of not getting ample loans in Eid-ul-Azha

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Jasim Uddin Haroon Local tanners expressed apprehension of not getting their expected amount of loans from the state-owned banks in the upcoming Eid-ul-Azha. Tanners told the FE Tuesday that they have applied for Tk 4.0 billion loans to the public sector banks to procure raw hide and skin during the peak season. "We came to know that we might get Tk 2.0 billion this year, which is just half of our expectation," said Belal Hossain, president of Bangladesh Finished Leather, Leather Goods and Footwear Exporters Association (BFLLGFEA). Mr Belal, present in a bank meeting last week, said: "Banks will scrutinise our export performance and accordingly take decisions of distributing loans." The banks might take their decisions in this connection Thursday or Sunday, bank sources said. The state-owned banks - Sonali, Janata, Agrani and Rupali - provide loans at low interest to the tanners for purchasing raw hide and skin during the Eid-ul-Azha, which accounts for more than 40 per cent of their yearly leather procurement. These banks account for about 90 per cent of the total loan given to the leather sector during the Eid-ul-Azha. Mr Belal said they would hold meeting with their members on October 30 to take initiatives for mobilising funds from alternative channels. Shamsul Huda, president of Bangladesh Tanners Association, said: "We're still optimistic that the banks will disburse loans as per our requirement." Officials of the state-owned banks said the tanners, who have duly repaid last year's credit, will get satisfactory loans this year. The banks are very strict in giving loans, and no credit will be granted to the defaulters. Last year the commercial banks increased the amount of loans to tanners by about 30 per cent to Tk 3.1 billion. Sonali Bank distributed Tk 600 million, Janata Bank Tk 1,500 million, Agrani Bank Tk 760 million, and Rupali Bank distributed Tk 250 million. Bank officials said they have been observing the world leather market that is now facing a slump due to the economic downturn in the European nations.