No fresh loans to defaulters in one month

The High Court on Sunday ordered the Bangladesh Bank and other banks not to allow the loan defaulters to take out fresh credit for the next one month or until the disposal of the writ petition.

The HC bench of Justice J B M Hassan and Justice Md Khairul Alam passed the order after hearing a new petition filed by the Human Rights and Peace for Bangladesh, a rights group.

Lawyer Manzill Murshid appeared in the court on behalf of the petitioner while lawyers Shameem Khaled and Munirujjaman stood for the central bank.

After the court order, lawyer Murshid said on July 8, the Supreme Court restricted fresh borrowing by the loan defaulters for two months.

And on August 29, the HC bench of Justice J B M Hassan and Justice Md Khairul Alam extended the time until October 20 and the same bench again extended its duration for the next one month or until the disposal of the writ petition, which comes first.

Meanwhile, the hearing continues on a Bangladesh Bank circular that allowed defaulters to reschedule their loans extending the repayment period to 10 years while securing new loans. Lawyer Murshid placed the submission in the court on Sunday. After his submission, the court adjourned the hearing until today (Monday).

Lawyer Shah Monjurul Hoque was also present in the court for the Bangladesh Association of Banks.

Following a writ petition filed by the rights group, the High Court on May 21 issued a status quo until June 24 on the central bank's May 16 circular that allowed defaulters to reschedule their defaulted loans up to 10 years and to further loans by making a down payment of just 2.0 per cent of the total loan.

On June 24, the HC extended its May 21 order for the next two months.

After hearing an appeal petition filed by the Finance Ministry, the Appellate Division's Justice Md Nuruzzaman, on July 3 stayed the HC order until July 8 and sent it to the SC full bench.