Dhaka Bank signs BB deal to support leather industry

Dhaka Bank PLC has signed a participation agreement with Bangladesh Bank under the central bank’s 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 international competitiveness of the country’s leather and leather goods sector.

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Md Jabdul Islam, director of the SME and Special Programmes Department of Bangladesh Bank, and AKM Shahnawaj, additional managing director of Dhaka Bank PLC, signed the agreement at the central bank’s headquarters in Dhaka recently, according to a press release.

Under the scheme, financing will be available for activities related to the leather and leather goods industry, including the construction or expansion of factory infrastructure and the purchase of machinery for tannery and leather goods production.

It will also cover leather collection and processing, warehouses and cold storage facilities, waste management and environmentally friendly infrastructure, compliance-related certification costs, working capital and tannery modernisation.

Eligible customers engaged in the leather and leather goods industry will have access to loans at an interest rate of 7 percent for a maximum tenure of up to seven years under the scheme.

Md Anis Ur Rahman, deputy governor of Bangladesh Bank, attended the programme as the chief guest.

Dhaka Bank PLC has been actively participating in various Bangladesh Bank refinance and specialised financing programmes to support the development of industries and entrepreneurship in the country.

Through the new participation agreement, Dhaka Bank will further expand access to financing on favourable terms for entrepreneurs and businesses engaged in the leather and leather goods industry.

Among others, Md Mojibur Rahman Sheikh, executive director of Bangladesh Bank, and Mohammad Mahbubur Rahman Palash, executive vice-president and head of MSME at Dhaka Bank PLC, were also present.