HC stays special central bank’s privilege for loan defaulters

Published: May 21, 2019 21:57:12 | Updated: May 23, 2019 19:17:09

The High Court (HC) on Tuesday issued an order to maintain a status-quo until June 24 on a Bangladesh Bank policy that offered special privileges to loan defaulters.

Justice FRM Nazmul Ahasan and Justice KM Kamrul Kader's bench issued the order after hearing an appeal filed by Advocate Manzill Murshid, reports UNB.

The central bank issued a special policy on May 16 for loan re-schedule and one-time payment, providing big opportunities for loan defaulters. They were allowed to re-schedule loans after paying 2.0 per cent of their previous loans and then their interest rate will be 9.0 per cent.

Besides, defaulters will be able to pay the rest of their loans in 10 years and they can also avail themselves of more loans from the bank.

On the same day, the court ordered the central bank to submit a list within June 24 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 re-scheduling," petitioner Murshid said.

The court on February 13 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 April 30 and gave another 15 days to file the list.

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