HC stays BB circular facilitating defaulters

The High Court on Tuesday issued an order to maintain a status-quo until 24 June on a Bangladesh Bank circular that offered special privileges to loan defaulters, reports UNB.

Justice FRM Nazmul Ahasan and justice KM Kamrul Kader's bench issued the order after hearing an appeal filed by lawyer Manzill Murshid.

On 16 May, the central bank issued the circular for loan reschedule and one-time payment, providing big opportunities for loan defaulters.

They were allowed to reschedule loans after paying 2 per cent of their previous loans and then their interest rate will be 9 per cent.
Besides, defaulters will be able to pay the rest of their loans in 10 years and they can also avail themselves of fresh loans from the bank.

On the same day, the court ordered the central bank to submit a list within 24 June of those who defaulted on loans above Tk 10 million in the past two decades, the amount of loan that got interest waiver and measures taken to prevent irregularities when providing such waivers.

"It's cheating with the court as there won't be any defaulters left after loan rescheduling," petitioner Murshid said.

On 13 February, the court ordered the central bank to provide a list of loan defaulters within four weeks after hearing a writ petition filed by Human Right and Peace for Bangladesh.

But the bank failed to submit the list. The court expressed dissatisfaction on 30 April and gave another 15 days to file the list.