The Financial Express

Chamber Judge stays HC order on BB privileges for loan defaulters

Published: July 02, 2019 19:50:46 | Updated: July 04, 2019 10:47:47

-File photo -File photo

The Chamber Judge of the Supreme Court on Tuesday stayed a High Court order that directed to maintain a status-quo on a Bangladesh Bank policy offering special privileges to loan defaulters.

Justice Md Nuruzzaman passed the order after hearing an appeal filed by the Finance Ministry. A full bench of the Appellate Division will hear the appeal on July 8, reports UNB.

Attorney General Mahbubey Alam stood for the ministry while Advocate Manzill Murshid represented the petitioner.

Murshid said the High Court's order has been stayed until July 8.

On May 16, the central bank offered special privileges for loan re-scheduling and one-time payment. Defaulters were allowed to re-schedule loans with 2 percent down payment.

Besides, defaulters will be able to pay the rest of their loans in 10 years and they can also take 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.

The High court on May 21 ordered maintaining a status-quo until June 24 after hearing an appeal. Later, it was extended for two more months.

In January, Human Rights and Peace for Bangladesh filed the writ petition seeking a commission to recommend restriction on loan interest waiver and probe irregularities in the sector.

On February 13, the High Court issued a rule seeking a list of loan defaulters within four weeks from the central bank.

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

Share if you like