SC extends stay on HC order halting BB circular

The Supreme Court (SC) today extended for two months its stay on a High Court order that halted Bangladesh Bank circular allowing defaulters to reschedule their loans with a repayment period of up to 10 years.

The apex court however issued a condition saying that the loan defaulters would not be allowed to get further loans by depositing two per cent down payment of the total loan amount.

The court also asked the HC bench led by Justice JBM Hassan to hear and dispose of the petition filed in this regard in next two months.

A four-member bench of the Appellate Division of the SC headed by Chief Justice Syed Mahmud Hossain passed the order after a petition filed recently by the finance ministry seeking stay on the HC order.

On July 3, Chamber judge of the Appellate Division of the SC, Justice Md Nuruzzaman stayed the HC order till today (July 8) and sent it to the SC full bench.

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.

Today, writ petitioners lawyer advocate Manzil Murshid told The Daily Star the borrowers can reschedule their loans with 2 percent down payment of the total amount of the loans but they can not get fresh loans from any bank following the SC order.

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