HC extends status quo on concessions to loan defaulters

The High Court Division on Monday extended until August 25 the status quo on the concessions given to loan defaulters by the Bangladesh Bank.

On May 16, BB gave the concessions to loan defaulters to reschedule bad loans on down payment of two per cent of the credit.

BB gave 10 years to repay the loans with one year’s grace period.

A bench of Justice FRM Nazmul Ahasan and Justice KM Kamrul Kader issued the fresh status quo that expired Monday.    

The bench extended the status quo after hearing a supplementary application of Human Rights and Peace for Bangladesh.

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

BB 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.

On Saturday, 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 also informed Parliament that state run commercial and specialised banks waived interest to the tune of Tk 1,198.24 crore of 6,163 borrowers in 2018.

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.

The bench asked the BB and the government to explain why they would not be asked to create a commission to inquire into the loan scams plaguing banks and identifying the perpetrators and why the government and the BB would not be asked to take action against the defaulters and money launderers.

The hearing was adjourned until Sunday.

News Courtesy: www.newagebd.net