HC halts privilege for loan defaulters

The High Court has halted the privilege of loan defaulters to secure further loans by giving a 2 per cent down payment until June 23.

It issued a status-quo on the Bangladesh Bank notice that allowed defaulters to reschedule their bank loans and get further loan via this method.

The HC bench of Justice FRM Nazmul Ahasan and Justice KM Kamrul Kader passed the order following a writ petition filed by Human Rights and Peace for Bangladesh.

It observed that Bangladesh Bank gave an opportunity to big loan defaulters through the notice, 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 said in the observation.

It observed the central bank is yet to execute the prime minister's instruction to lower down the interest rate to single digit for bank loans.

Petitioners' lawyer Advocate Manzill Murshid told The Daily Star that the defaulters can now no more get their loans rescheduled by paying a 2 per cent down payment.