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HC extends freeze on privilege for loan defaulters

Published : Monday, 24 June, 2019 at 7:25 PM  Count : 397

HC extends freeze on privilege for loan defaulters

HC extends freeze on privilege for loan defaulters

Loan defaulters will be barred from paying off their debts with 2 percent down payment and 9 percent interest rate as the High Court has extended its freeze on a Bangladesh Bank circular by two months.

The HC bench of Justice FRM Nazmul Ahsan and Justice KM Kamrul Kader passed the order on Monday following a petition, reports

The extension of freezing the Bangladesh Bank order will remain in force until August 24.

On May 21, the court had put on hold until Jun 24 the circular in repose to a petition filed by lawyer Manzill Murshid who appeared the Human Rights and Peace for Bangladesh.

The tenure for the repayment is 10 years with a grace period of one year, according to the circular. Under the existing policy, the defaulters can reschedule their classified loans by making a down payment of 10-50 percent.

The HC also issued a rule asking the defendants to reply within two weeks on preventing corruption in the financial sector through an affidavit.

The court will hear on Sunday on whether the Association of Bankers, Bangladesh could be a party of the case.

The amount of total defaulted loans is Tk 2.2 trillion in the last 20 years, according to a report submitted by the BB to court.

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