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SC extends stay on HC order that halted BB circular offering loan defaulters privileges

FE Online Desk | Published: July 08, 2019 14:48:53 | Updated: July 08, 2019 19:01:20


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The Supreme Court on Monday extended for two months its stay on a High Court order that halted a central bank circular providing loan defaulters with privileges.

That means, the privileges that defaulters can repay their loans with 2.0 per cent down payment at an interest rate of 9.0 per cent will be in force for now.

The court, however, laid down a condition that the defaulters will not be allowed to get fresh loans from any banks in two months after deposing 2.0 per cent down payment of the total outstanding amount.

A four-member Appellate Division bench led by Chief Justice Syed Mahmud Hossain handed down the order on Monday.

The chief justice-led bench also asked the HC bench of Justice JBM Hassan and Justice Md Khairul Alam to hear and dispose of the petition filed in this regard within the next two months.

The order follows a petition recently filed by the finance ministry seeking a stay on the HC order that halted the central bank circular.

Last on Tuesday, the chamber judge of the Appellate Division sent this petition, staying the HC order, to the SC full bench for hearing on it today.

The Bangladesh Bank on May 16 issued the above-discussed circular providing defaulters with privileges that include allowing them to reschedule their loans for a period of up to 10 years, according to media repots.

Human Rights and Peace for Bangladesh (HRPB) took issue with the circular and moved the HC against it on May 21, when the latter stayed it till June 24, when it again extended the stay order by two months.

Emerging from the court, lawyer Manzill Morshed, who represented the HRPB, said, "The Appellate Division has stayed the High Court order for two months.

"Those privileged under the new central bank policy will not be able to get new loans during the repayment period."

During the hearing, Attorney General Mahbube Alam was accompanied by Deputy Attorney General Bishwajit Debnath.

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