Bangladesh Bank and Dhaka Bank PLC have signed a participation agreement under the Tk2,000 crore pre-finance scheme for the development and advancement of the leather and leather goods industry, aimed at supporting the growth, modernization and enhanced international competitiveness of the country’s leather and leather goods sector.
The agreement was signed on September 16 at Bangladesh Bank head office.
Md Jobdul Islam, director, SME & Special Program Department, Bangladesh Bank and AKM Shahnawaj, additional managing director, Dhaka Bank PLC, exchanged the agreement on behalf of their respective organizations in the presence of chief guest of the program Md Anis Ur Rahman, deputy governor, Bangladesh Bank.
Md Mojibur Rahman Sheikh, executive director, Bangladesh Bank; Mohammad Mahbubur Rahman Palash, EVP & head of MSME, Dhaka Bank PLC; and managing directors and senior officials of other participating banks were also present at the signing ceremony.
Under the scheme, financing will be available for a range of activities related to the leather and leather goods industry, including construction or expansion of factory infrastructure and 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 business operations and modernization of tanneries.
Eligible customers engaged in the leather and leather goods industry will have the opportunity to access loans at an interest rate of 7% for a maximum tenure of up to seven years under the scheme.
Dhaka Bank PLC has been actively participating in various Bangladesh Bank refinance and specialized financing program to support the development of industries and entrepreneurship in the country.
Through this new participation agreement, Dhaka Bank will further expand access to financing on favorable terms for entrepreneurs and businesses engaged in the leather and leather goods industry.