Update July 23, 2019

Dhaka 3-13 am, 11-August, 2020

HC issues rule against BB circular on loan rescheduling

Mirajul Moin Joy

The High Court (HC) today issued a rule, asking authorities concerned to explain in 10 days as to why it shall not declare illegal a Bangladesh Bank circular that allowed special concession for loan defaulters.

A High Court division bench comprising Justice JBM Hassan and Justice Md Khairul Alam passed the order after holding hearing on a plea filed in this regard.

The Appellate Division of the Supreme Court on July 8 stayed for two months a High Court order that imposed a status-quo on a Bangladesh Bank circular.

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 challenging the central bank order.

The High Court on June 24 extended for two more months the status-quo.

The apex court during staying HC order however, put a condition saying if anyone takes the special concession, he would not be allowed to take further loan from any bank within two months.

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