Bangladesh Bank has announced a temporary relaxation in loan regulations for the leather sector ahead of Eid-ul-Azha 2026. According to a circular issued on Tuesday, businesses that previously rescheduled their loans will now be able to access new financing without paying the earlier required compromise amount. The relaxation will remain effective until June 30, 2026, allowing more traders to secure working capital for rawhide collection, preservation, and marketing during the festival season.

The central bank emphasized that the leather industry is a key export-oriented sector based on domestic raw materials, contributing significantly to national growth, employment, and foreign exchange earnings. As nearly half of the annual rawhide supply comes from sacrificial animals during Eid-ul-Azha, the circular directed banks to ensure adequate financing and to distribute loans effectively to grassroots traders.

Banks have also been instructed to set loan disbursement targets for 2026 that are not lower than the previous year’s levels and to submit related data to Bangladesh Bank by July 31, 2026.