SC stays HC order on halting privilege for loan defaulters

The Supreme Court today stayed till July 8 the High Court orders that halted Bangladesh Bank's circular allowing defaulters to reschedule their loans with a repayment period of up to 10 years and get further loans.

Chamber Judge of the Appellate Division of the SC Justice Md Nuruzzaman passed the order following a petition filed by the finance ministry seeking stay on the HC orders in this regard.

The apex court chamber judge also sent the finance ministry's petition to its full bench for hearing on the matter on July 8.  

Following a writ petition filed by Human Rights and Peace for Bangladesh (HRPB), the HC on May 21 issued a status quo till June 24 on the central bank's May 16 circular that allowed the defaulters to reschedule their defaulted loans upon a down payment of just 2 percent of the total loan amount up to 10 years and to get further loans.

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

The finance ministry recently filed a petition with the SC seeking stay on the HC's May 21 and June 24 orders.

After hearing the petition today, the SC chamber judge stayed the HC orders till July 8.     

Attorney General Mahbubey Alam appeared for the finance ministry while Advocate Manzill Murshid argued for the HRPB.