Bangladesh Bank on Tuesday extended for another one and a half months the cut-off date for submitting applications by the loan defaulters to reschedule their loans with just 2 per cent down payment and other facilities.
The central bank issued a circular on the day following a High Court order of August 29 this year that asked for setting the cut-off date at October 20, 2019.
On May 16 this year, the central bank issued a circular on loan rescheduling facility offering the defaulters to enjoy a 10-year loan repayment tenure including a one-year grace period by paying the meagre amount, giving 90 days for filing applications to avail the scope.
The bailout for the defaulters, what is seen as a politically motivated move, drew huge criticisms from different quarters and filing of a writ petition with the High Court challenging the government’s move.
On May 21, the HC issued status quo on the BB circular till June 24.
However, the HC order was stayed for two months by the Appellate Division on July 8, opening up the scope for rescheduling of defaulted loans.
On August 8, the central bank following instruction from the High Court extended the application submission deadline to September 7.
Apart from the rescheduling for 10 years under the scheme, the BB also allowed settlement of loans under ‘One Time Exit’ scheme that allows the defaulters to enjoy interest waiver for the preceding period of rescheduling.
However, the beneficiaries of the scheme must not be granted any fresh loans.
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