Tuesday, October 15, 2019

High Court freezes central bank circular on loan rescheduling

  • Staff Correspondent, bdnews24.com
    Published: 2019-05-21 14:20:19 BdST

bdnews24

The High Court has put on hold until Jun 24 a Bangladesh Bank circular that allows loan defaulters to reschedule classified loans with 2 percent down payment.

A bench of the court passed the order on Tuesday in repose to a petition filed by lawyer Manzill Murshid.

A maximum 9 percent interest will be charged on the rescheduled loans and 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 central bank’s new policy will encourage the bank defaulters and subsequently the commercial banks will suffer a financial crisis. That’s why we filed a petition with the court seeking to stop the implementation of the circular,” the lawyer told reporters.