BB launches Tk 2,000cr pre-finance scheme for leather sector development

 
Bangladesh Bank (BB) has launched a Tk 2,000 crore pre-finance scheme to support the development and expansion of the country's leather and leather goods industry, aiming to boost exports, improve environmental compliance, and enhance competitiveness.

According to a circular issued on Thursday, the fund has been created from the central bank's own resources to help transform the leather sector into a sustainable, environmentally friendly, and globally competitive industry.

The scheme will finance the construction and expansion of factories, procurement of machinery, and installation of environmental facilities such as Effluent Treatment Plants (ETP), Sewage Treatment Plants (STP), dumping yards, and solid waste management systems, according to BSS report. 

It will also support compliance costs for obtaining Leather Working Group (LWG) certification, modernization of existing tanneries, and the domestic production of chemicals, accessories, and other ancillary products for the leather industry.

Under the scheme, borrowers will receive loans at a maximum interest rate of 7%, while Bangladesh Bank will provide participating banks with refinance at 4%.

All scheduled banks in Bangladesh can participate in the scheme by signing agreements with Bangladesh Bank's SME and Special Programs Department.