Defaulting tanners, who have shifted to the leather industrial city at Savar, have now got three more months to repay their default loans under relaxed facilities.
Media reports maintained this while adding that considering the upcoming Eid-ul-Azha, when tanners usually invest huge amount of money to purchase rawhides, Bangladesh’s central bank (the Bangladesh Bank) took the decision to extend deadline to apply for loan rescheduling with a 2 per cent down payment to 30 September and issued a circular in this direction, as per which, the application time has been extended due to the long and lingering pandemic, and because of the upcoming Eid-ul-Azha even as under this facility, tanneries, which have been facing the burden of default loans for years, are now allowed to repay their non-performing loans or NPLs in a relaxed manner by September.
According to reports, banks are allowed to offer a one-time exit policy with only a 2 per cent down payment to tanners who are unable to run businesses amidst the current coronavirus crisis even as tannery owners, whose bank loans amounted to up to Taka 5 crore as of 31 December 2020, will get three years for the exit and defaulters with more than Taka 5 crore loans will have a maximum of five years to repay the amount owed while the tannery owners who are able to run their business, will enjoy a rescheduling facility by making a 2 per cent down payment.
