Banks will provide Tk433 crore loans to tannery owners for purchasing rawhide after Eid-ul-Azha, the highest rawhide collection season in the country. Of these loans, four state-owned banks (Sonali, Janata, Agrani and Rupali) will provide Tk 258 crore. Of which, Janata Bank Limited has set a target of providing the highest amount of Tk 120 crore. Last year, the same amount of loans were planned to be distributed, but finally Janata Bank disbursed Tk 40 crore only. Read: Govt hikes rawhide prices ahead of Eid According to Bangladesh Bank (BB), the tannery owners will get bank loans of Tk 433 crore to buy raw hides. A portion of this loan has already been disbursed, the central bank sources said. This year, Rupali Bank is giving loans of Tk 30 crore, Agrani Bank Tk 83 crore and Sonali Bank Tk 25 crore. After the disbursement of loans in the leather sector in the nineties, most of the loans were not repaid. As a result,the private banks have stopped giving loans for this sector due to non-repayment culture of tannery ownets. Read: Savar Tannery Estate: Guideline to be prepared over plot allocation Now all the four state-owned banks are lending more to buy raw-hide. Apart from this, a few private banks are giving a small amount of loans. Bank officials say there is a tendency among tannery traders to invest the loans money in other sectors. That is why they willingly become loan defaulters.

Borrowers can repay their bank loans until Aug. 31 as the central bank extended the deadline considering the Covid situation. The relaxation was announced Monday by a Bangladesh Bank circular. Alsoread: Banks to remain closed on Sunday during lockdown It said the measure of shifting the June 30 deadline was taken considering the negative impact of coronavirus on the country's economy. Those unable to repay their loan instalments by June 30,can do it until Aug. 31 on the basis of bank-client relation. In this case, their loans would not be classified if 50 of their loans’ payable instalment are paid,” it said, adding that other policies will remain applicable in case of calculating the loans, lease, interest on advances and profits while no penalty interest or extra fee will be charged. Also read: No easy bank loans, say jobless expatriates, but bank refutes allegations

Left jobless due to corona pandemic last year a helpless Nurul Azim Babu returned from Dubai to his home in Chottagram, his future dark and gloomy. The money he had saved from his six-year job as a driver exhausted soon forcing a desperate Babu to look for a new job or start a small business in Bangladesh. Read: No good news yet from Italy: FM about expats' return The job proved elusive and no business was coming his way as the father of three children had no capital. At this point Babu received a good news. The government announced a Tk. 700 crore package of incentives for the Bangladeshi expatriates like him who had to return home after losing jobs abroad due to Covid-19. As advised by a friend he went to the state-owned Prabashi Kallyan Bank and applied for a loan Tk 3 lakh. It did not take long for the helpless man to realize getting the loan was not going to be a cakewalk. “The first thing the bank asked me to do is to prove that I have an at least one-year-old running business in Bangladesh.” “Since I had no such business and no one to help me in this regard I did not qualify for the loan.” Haunted by his job loss and subsequent harassment at home a frustrated Babu wondered if the government offer has been “a kind of deception.” This is not only Babu’s tale. A good number of an estimated five lakh Bangladeshi returnee expatriates have echoed his frustration in interviews with this UNB correspondent. Read: Bahrain urged to take back Bangladeshi expats Consider the case of Sohag Hawlader, who returned from Lebanon after being fired from his work with his employer citing coronavirus woes. He said, "If an ordinary expatriate like me goes for a loan from PKB, they ask to submit trade license and signature of a businessman, signature of another government official as guarantee."   Sohag, who has his wife and a child continued: "They (PKB) are posting advertisement on Facebook and YouTube: it is very easy to get loan from the bank. There should have a limit to harassment. “My request to all expatriates is not to take a loan from them as they are insulting us,” said an angry Shohag. The PKB management strongly refutes the allegations. Zahidul Haq, managing director of  PKB told UNB that they are successfully disbursing their loan to the returnee migrants who wanted to start their new business or project in Bangladesh. “The Bank is trying its best to help the migrants in financing their businesses,” he said. He countered that many expatriates have understood the package as one-time charity, not a loan. "People want to take money from the bank as incentives, but not as loan. Those who are complaining don’t want to follow the procedure needed to get loan. We only sanction loan to the people who can really show a plan of business as our aim is to reintegrate them," he said. He mentioned that the bank has already disbursed almost TK250 crore to the 13000 migrants in last 11 months. The bank is still following up the applications who have failed to take the loan as “we will get another amount of TK390 crore from the government,” he said. Last year the government announced a Taka 700 crore fund for rehabilitation and re-employment of the jobless overseas workers. Read: 28,849 Bangladeshi expats to return home: FM It came as many Bangladeshis to the country after Covid-19-induced loss of overseas employment. The PKB says it has disbursed Tk250 crore to almost 13000 returnees until June 21 this year, covering only 2% of the returnee migrants. Yet there are outpouring of allegations from the affected expatriates. Tanjil Islam, a returnee, said, "I went to the Cox's Bazar branch of PKB six times, but did not get any loan.” “They (bank officials) came to my home and demanded money. I didn't pay and so they submitted the bad report about me." Another returnee from Saudi Arabia Muneer Islam said that the expatriate welfare and loan distribution is just a propaganda. They are charging the same interest rate like other commercial banks.” Is it an example on how a good government initiative fails to reach the intended beneficiaries. The government has created a low interest loan facility of Tk500 crore, while a Tk200 crore fund from the Wage Earners' Welfare Board was also formed. Loans for the returnee migrants are being distributed through the PKB. The PKB is giving Tk1-5 lakh loans at 4% interest to returnee migrants. Those who receive the reintegration loans will enjoy a grace period ranging from one month to one year before they start to repay the loans. A returnee can take a maximum of Tk2 lakh as loan without any collateral. According to a rapid study conducted by the Ovibashi Karmi Unnayan Programme (Okup) last year, around 80 per cent of the returnee migrant workers want to be reintegrated in Bangladesh. But apparently the number of loan receivers is still very poor. A survey by Brac Migration Programme has found that 47.23 per cent of 417 returnee migrants do not have any source of income now. The report says 52.77 per cent of the 417 respondents to the survey have somehow managed work. Of them, 24.19 per cent are working in agriculture, 22.33 per cent as day labourers, 35.35 per cent in small businesses and 17.67 per cent are working in other jobs. The survey was conducted in March-April to explore and analyse the socio-economic and psycho-social situation of returnee migrants after one year of their return home during the pandemic. In a similar survey conducted around the same time last year, Brac found 87 per cent of 558 returnee migrants did not have income opportunities, said Brac Migration Programme Head Shariful Hasan. Also, 28 per cent respondents said they have debts now. Of them, 61.95 per cent borrowed money after returning home, and 25.05 per cent had debts previously. Rights groups suggest the government increase budgetary allocation for the expatriates' welfare. They call for their inclusion into the government programmes and policies in response to the shock of the pandemic. Mentioning migrant workers' immense contribution to the country's economy, RMMRU Executive Director Prof CR Abrar said, "Many migrants have come back under very dire circumstances, and they have not been able to make ends meet.”      

Bangladesh Bank has suspended all kinds of interest on bank loans for from April 1 to May 31 as businesses have been hugely affected by coronavirus outbreak.   A circular issued by the central bank’s Banking Regulations and Policy Department (BRPD) to all banks of the country said the Bangladesh Bank has decided that interest on all kinds of bank loans have to be transferred as interest-less blocked.    “This blocked interest should not be realised from borrowers until further order and such kind of interest should not be transferred to the income of the banks,” said the Bangladesh Bank.