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Bangladesh Bank asks banks to take step regarding HC order

  • Published at 09:39 pm May 22nd, 2019
File photo of the main entrance of Bangladesh Bank in Motijheel area of the capital Mehedi Hasan/Dhaka Tribune

The central bank in a circular on May 16 offered the waivers to the loan defaulters

Bangladesh Bank on Wednesday asked all scheduled banks for taking necessary action in connection with the High Court order halting till June 24 a circular that granted huge waivers to loan defaulters. 

On Wednesday, the central bank issued a circular in this regard to the managing directors and CEOs of the banks. 

The central bank in a circular on May 16 offered the waivers to the loan defaulters. 

Experts criticized heavily the latest Bangladesh Bank policy allowing defaulters to reschedule loans by paying 2.0% down-payment for a maximum period of 10 years. 

They think that offering such a benefit will increase the number of wilful defaulters and discourage good borrowers from repaying loans. 

On Tuesday, a writ was filed on behalf of a human rights organization, Human Rights and Peace for Bangladesh, seeking suspension of the circular. 

In response, the High Court on the day ordered a halt till June 24 to the Bangladesh Bank circular.   

A bench of Justice FRM Nazmul Ahasan and Justice KM Kamrul Kader issued the order after hearing a petition filed by lawyer Manzill Murshid.