United Commercial Bank PLC (UCB) has signed two separate Memorandums of Understanding (MoUs) with Bangladesh Bank to participate in two BDT 2,000 crore pre-financing schemes aimed at supporting the growth of the leather and leather goods industry and the export-oriented frozen food industry. Under these schemes, eligible entrepreneurs will be able to access loans at an interest rate of 7%.

The MoUs were exchanged at a ceremony held at Bangladesh Bank on 1 November. Md. Ridwanul Hoque, Deputy Managing Director of UCB, exchanged the agreements with Md. Jabdul Islam and A K M Saiduzzaman, Directors of Bangladesh Bank. The ceremony was attended by Md. Anis-ur-Rahman, Deputy Governor of Bangladesh Bank; Arif Hossain Khan and Nahid Rahman, Executive Directors of Bangladesh Bank; and Mohammad Selim Chowdhury, Head of SME, UCB, along with senior officials from both organisations.

Under the schemes, financing will be available to support environmentally friendly production, enhance export capacity and create employment opportunities in the leather and leather goods industry. For the frozen food industry, loans will support working capital requirements, factory establishment and modernisation, and cold storage construction. Exporters of frozen shrimp, fish, vegetables, paratha and other eligible products will be able to benefit from the financing facilities.

With these two agreements, UCB has entered into a total of 17 agreements under various refinancing and pre-financing schemes of Bangladesh Bank. Through these initiatives, the bank continues to provide low-interest financing to entrepreneurs in the SME, agriculture and other eligible sectors.