HC issues rule against BB circular on loan rescheduling

DHAKA, 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 statusquo 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 statusquo 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 statusquo.

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.

Source: Bangladesh Sangbad Sangstha (BSS)