HC questions legality of BB circular

The High Court (HC) on Tuesday issued a rule questioning the legality of a Bangladesh Bank (BB) circular, which offered special privileges for loan defaulters.
The court asked the BB and the Finance Ministry to explain within 10 days as to why the circular should not be declared illegal.
The next hearing date of the case has been fixed for July 31.
On May 16, the BB issued the circular allowing defaulting borrowers to reschedule loans by paying a 2.0 per cent down payment for a maximum period of 10 years.
The defaulters were also given the scope to avail a 'one time exit' facility by clearing all dues within 360 days after getting the approval by the banks concerned.
The rule was issued by a HC bench comprising Justice JBM Hassan and Justice Md. Khairul Alam while hearing the petition filed by Human Rights and Peace for Bangladesh (HRPB).
Earlier on July 8, the Appellate Division had sent the petition to the bench for disposal in two months.
On that day the Division had also halted for two more months the HC order that had restricted the loan defaulters from enjoying the privileges.
However, the apex court, in its order, barred these defaulters from getting fresh loans from any bank during the period.
Attorney general Mahbubey Alam appeared for the Finance Ministry; M Moniruzzaman for central bank, and advocate Manzill Murshid argued in favour of the petitioner.

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