Dhaka, June 12 -- Bangladesh Bank's initiative to inject Tk 232 crore into the leather sector for procuring rawhide during Eid-ul-Azha has fallen significantly short, with only Tk 125 crore disbursed to businesses, according to industry insiders.

Bankers cited a lack of interest among leather traders in taking out new loans as a reason for the shortfall, while the industry insiders highlighted a sharp rise in loan defaults, which has made banks more reluctant to extend credit to the sector.

As a result, tannery owners and seasonal leather suppliers have been unable to purchase sufficient quantities of rawhide during the peak Eid-ul-Azha season.

Stakeholders are now calling for easier loan terms and relaxed documentation requirements ah...