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

He also sent the finance ministry’s petition to an SC 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 defaulters to reschedule their defaulted loans upon a down payment of just two 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.

Attorney General Mahbubey Alam appeared for the finance ministry while Advocate Manzill Murshid represented HRPB during yesterday’s hearing.