‘Loan defaulters cashing in on circular'

Central bank privilege for defaulters


FE REPORT | Published: October 25, 2019 11:10:19 | Updated: October 31, 2019 18:09:22


Representational image

In the High Court hearing on a writ petition on Thursday, Advocate Manzill Murshid said 'headstrong loan defaulters' are taking advantage of the circular issued by the Bangladesh Bank.

The circular allowed loan defaulters to reschedule their loans with a repayment period for 10 years and get further loans.

The lawyer said loan defaulters are enjoying all kinds of facilities even after being defaulters. "But in other countries, we see such loan defaulters are barred from getting many facilities after they are identified by the regulatory authorities."

He added: "So, an initiative should be taken to identify wilful loan defaulters in our country. But the Bangladesh Bank circular has given the opportunity to all loan defaulters without identifying headstrong loan defaulters," lawyer Manzill said.

In his part, ACC lawyer said in the hearing, "The writ petitioner's apprehension may be correct. Despite having legitimate expectation, I can't act bypassing my statutory provisions."

After the lawyers' submission, the HC bench of Justice J B M Hassan and Justice Md Khairul Alam adjourned the hearing till Sunday.

Following a writ petition filed by Human Rights and Peace for Bangladesh (HRPB), a rights organisation, the same bench issued a rule on July 23, 2019, asking the authorities concerned of the Bangladesh Bank and the government to explain within 10 days as to why the circular issued on May 16 giving privilege to loan defaulters should not be declared illegal.

Share if you like