Rawhide traders cashing in on easy bank loans
Abu Ahmed, Professor of Economics, Dhaka University:
The rawhide traders of the country are cashing in on the easy bank loans. The traders failing to pay back bank loans should not be given any loan further.
The traders have taken it for granted that it is not necessary to repay loans taken from the state-owned banks. Apart from the state-owned banks, a few private banks gave loans to rawhide or jute traders. The traders have repaid the loans taken from the private banks accordingly. Only the loans taken from the state-owned banks were not paid back. Therefore, the managements of the state-owned banks should take a firm stand in this respect.
The traders will come up with excuses like those that the rawhides got damaged or the hides were smuggled to India. I think these are all bogus talk. The traders will purchase the hides when the prices will decline. They will manage the fund from anywhere else, if need be. The state-owned banks should take a firm stand and the defaulting businesses should not be given loans, if required.
The traders will manage loans from open market Somehow. The traders are here for doing business. Should anybody give loan to someone for the second time who fails to repay it? This is a simple math.
You should repay the loan first; otherwise, you should not do business. It is not justifiable to take bank loans for purchasing rawhide without paying it back.
Based on an interview by Mahbubul Islam, translated by Hossen Sohel.