The Financial Express

No fresh borrowing by defaulters until Oct 20: HC

FE Report | Published: August 30, 2019 10:05:05 | Updated: August 30, 2019 19:28:01

No fresh loans for defaulters until Oct 20: HC

The High Court on Thursday ordered the Bangladesh Bank and other banks not to allow the loan defaulters to take out fresh credit until October 20.

They are the loan defaulters, who got the opportunity to reschedule their classified loans providing a 2.0 per cent down payment.

The HC bench of J B M Hassan and Md Khairul Alam delivered the order after hearing a new petition filed by Human Rights and Peace for Bangladesh (HRPB), a rights group.

Lawyer Manzill Murshid appeared in the court on behalf of the petitioner while Shameem Khaled stood for the Bangladesh Bank.

After the court order, lawyer Murshid said the Supreme Court on July 8 stayed for two months a High Court order that halted a Bangladesh Bank notice. The stay order will expire on September 07.

The central bank notice allowed defaulters to reschedule their loans with the repayment period making up to 10 years.

The apex court in its order then, however, said that anyone opting for the opportunity of loan rescheduling will not be allowed to borrow funds from another bank during the two months.

"We filed a fresh petition with the High Court against this backdrop," he said.

"After hearing the petition, the HC bench ordered the Bangladesh Bank and other respondents not to allow those loan defaulters to borrow funds from another bank until October 20," said the lawyer.

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