MTB joins BDT 2,000cr leather industry financing scheme

Dhaka: Mutual Trust Bank PLC (MTB) has joined Bangladesh Bank’s BDT 2,000 crore pre-finance scheme to expand the country’s leather and leather goods industry through access to affordable financing.

The agreement was signed on November 1 at Bangladesh Bank. Md. Zabdul Islam, director of the central bank’s SME and Special Programs Department, and MTB Managing Director and CEO Syed Mahbubur Rahman exchanged the documents on behalf of their organizations.

Bangladesh Bank Deputy Governor Md. Anis Ur Rahman attended the ceremony as chief guest, while Executive Director Nahid Rahman and MTB’s Head of SME and Agri Banking Division Sanjib Kumar Dey were also present.

The three-year revolving fund will provide refinance facilities to participating banks at 4 percent interest, with the maximum lending rate for customers set at 7 percent.

Eligible businesses can receive term loans for up to seven years, including a grace period of up to two years, while working capital financing will be available for up to one year, subject to applicable conditions.

The scheme covers investments in tanneries, leather goods manufacturing, raw leather processing, modern machinery, cold storage, environmental compliance facilities and Leather Working Group (LWG) certification.