Appellate Division allows BB to reschedule defaulted loans 

Staff Correspondent | Published: 00:22, Jul 03,2019 | Updated: 00:37, Jul 03,2019

 
 

The Appellate Division on Tuesday stayed until July 8 the status quo imposed by the High Court Division on rescheduling the loans of defaulters by Bangladesh Bank.

The stay ordered by Appellate Division’s chamber judge Justice Md Nuruzzaman paved the way for the government and the BB to reschedule defaulted loans on down repayment of two per cent of the defaulted credit.

The  regular bench of the Appellate Division would hear the government’s appeal against the status quo  on July 8, said that chamber judge.

 

A Public interest litigation writ petition filed by Human Rights and Peace for Bangladesh challenging rescheduling of defaulted loans is pending in the High Court Division.

In a separate ruling, the HC directed the BB to form an independent commission to identify loan defaulters and money launderers.

The BB and the government were also asked to explain why they would not take action against the defaulters and money launderers.

At the previous hearing, BB informed the High Court that the total defaulted bank loans amounted to Tk 2.2 lakh crore, of which 1.1 lakh crore was recoverable while Tk 30,000 crore was not recoverable.

BB had also informed the court that the recovery of loans amounting to Tk 80,000 crore  was stalled by courts.

BB had submitted the information in sealed envelopes that were not opened in the courtroom after BB submitted that its credit information could not be made public except in Parliament.

Earlier the finance ministry submitted in Parliament the list of 300 top loan defaulters who owed bad loans to the tune of Tk 50,942 crore to banks and financial institutions.

The finance minister had also informed Parliament that in 2018, state run commercial and specialised banks waived interests on loans to the tune of Tk 1,198.24 crore  to be repaied by f 6,163 borrowers.

The finance minister also informed Parliament that 300 business entities defaulted on repaying   loans amounting to Tk 50,942 crore while the  total outstanding loans stood at Tk 70,571 crore until April.

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