Regulatory Alerts2026-07-30
Added · Updated
BRPD-1 Circular No. 15: Pre-Finance scheme for the Growth and Development of Leather and Leather Goods Industry Sector
This circular establishes a BDT 2,000 Crore Pre-finance Fund by Bangladesh Bank for all scheduled banks to support the leather and leather goods industry. The fund aims to facilitate the construction/expansion of factories, purchase of machinery, raw material processing, environmental compliance (e.g., ETPs), and Leather Working Group (LWG) certification. Eligible borrowers can receive term loans up to BDT 30 Crore for new tanneries or BDT 20 Crore for new leather goods factories, and working capital loans up to BDT 30 Crore, at a maximum interest rate of 7% from banks, while banks pay 4% to Bangladesh Bank. Special conditions include obtaining LWG certification and sourcing at least 10% of electricity demand from solar within two years of receiving funds, with non-compliance leading to disqualification from future loan facilities.