Update July 8, 2019

Dhaka 7-59 pm, 06-August, 2020

SC stays HC order against BB concession for loan defaulters

Mirajul Moin Joy

The Appellate Division of the Supreme Court (SC) today stayed for two months a High Court order that imposed a status-quo on a Bangladesh Bank circular that had allowed special concession for loan defaulters.

“Stay for two months,” said a four-member Appellate Division bench headed by Chief Justice Syed Mahmud Hossain.

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 today 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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