BB, Dhaka Bank sign deal on pre-finance scheme for leather sector

Bangladesh Bank and Dhaka Bank PLC have signed a participation agreement under the Tk 2,000 crore Pre-Finance Scheme for the Development and Advancement of the Leather and Leather Goods Industry. The scheme aims to support the growth, modernisation and enhanced international competitiveness of the country’s leather and leather goods sector.

The agreement was signed at Bangladesh Bank Head Office recently, says a press release.  

Md Jobdul Islam, Director of the SME Special Programs Department of Bangladesh Bank, and A K M Shahnawaj, Additional Managing Director of Dhaka Bank PLC, signed the agreement on behalf of their respective organisations.

The signing ceremony was attended by Chief Guest Md Anis Ur Rahman, Deputy Governor of Bangladesh Bank. Also present were Md Mojibur Rahman Sheikh, Executive Director of Bangladesh Bank; Mohammad Mahbubur Rahman Palash, EVP and Head of MSME at Dhaka Bank PLC; as well as managing directors and senior officials of other participating banks.

Under the scheme, eligible customers in the leather and leather goods industry will be able to access loans at an interest rate of 7% for a maximum tenure of up to seven years.

Financing will be available for a wide range of activities, including: Construction or expansion of factory infrastructure. Purchase of machinery for tannery and leather goods production. Leather collection and processing. Construction of warehouses and cold storage facilities for raw and processed leather. Waste management and environmentally friendly infrastructure. Compliance-related expenses for obtaining certifications. Working capital for day-to-day operations Modernisation of tanneries.