SC stays HC bar on BB’s special concession to loan defaulters

Dhaka, July 08 – The Appellate Division of the Supreme Court (SC) yesterday stayed for two months a High Court order that imposed a status-quo on a Bangladesh Bank circular that had allowed special concession for loan defaulters by rescheduling their loans with a repayment period of up to 10 years.
“Stay for two months,” the four-member Appellate Division bench headed by Chief Justice Syed Mahmud Hossain came up with the order after hearing a petition filed recently by the finance ministry seeking stay on the HC order.
However, the apex court issued a condition saying that if anyone takes the special concession, he would not be allowed to take further loan from any bank within two months.
The apex court also asked the HC bench led by Justice JBM Hassan to hear and dispose of the petition filed in this regard in next two months.
The central bank on May 16 posted the circular on its website, allowing loan defaulters to reschedule their bank loans by paying 2 percent down payment and securing further loan in this way.
But the High Court on May 21 imposed the status-quo for one month on the Bangladesh Bank circular after holding hearing on a writ petition filed by Human Rights and Peace for Bangladesh (HRPB) challenging the central bank order.
The High Court on June 24 extended for two more months the status-quo. – Staff Reporter