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22nd-May-2019

Defaulters won't get loan rescheduling privileges

By

Staff Reporter :
The High Court (HC) on Tuesday halted the privilege of loan defaulters to reschedule their outstanding loans by giving a 2 per cent down payment until June 24.
The court issued a status-quo on the Bangladesh Bank circular that allowed defaulters to reschedule their bank loans and get further loan via this method.
The HC Bench of Justice F R M Nazmul Ahasan and Justice K M Kamrul Kader passed the order after hearing a writ petition filed by a rights organisation, Human Rights and Peace for Bangladesh (HRPB).
The court observed that Bangladesh Bank gave an opportunity to big loan defaulters through the circular, which creates scope of Tk 1 lakh crore laundering.
 "On the other hand, the central bank is making the genuine businessmen pay 14 to 15 per cent interest, which is a discrimination," it also said in the observation.
It observed that the central bank is yet to execute the Prime Minister's instruction to lower down the interest rate to single digit for bank loans.
Advocate Manzill Murshid appeared in the court on behalf of HRPB, while Advocate Md Moniruzzaman stood for the Bangladesh Bank.
After the court's order, petitioners' lawyer Manzill Murshid told reporters that the defaulters can now no more get their loans rescheduled by paying a 2 per cent down payment.
He said, "We brought the matter to the attention  of the HC on May 16 after knowing through media reports and prayed to the court to stay the notice. Then the court asked the lawyer of the Bangladesh Bank if the notice was issued. They replied to the court that they didn't publish any notice like that."
"That day the court ordered Bangladesh Bank authorities to submit a list of borrowers with more than Tk 1 crore in default loans by June 24. But the central bank uploaded the notice on their website in the afternoon on May 16. We filed a petition on Sunday challenging the notice," said the lawyer.
Advocate Manzill said, "Through the notice the Bangladesh Bank allowing the loan defaulters for further loan by giving a 2 per cent down payment. But by this the backbone of the bank will be broken. So we prayed to the court to stay the effectiveness of the notice till hearing of the case. Then the court issued a status-quo on the Bangladesh Bank notice till June 24."