Bangladesh Bank on Wednesday asked all scheduled banks for taking necessary action in connection with the High Court order halting till June 24 a circular that granted huge waivers to loan defaulters.
On Wednesday, the central bank issued a circular in this regard to the managing directors and CEOs of the banks.
The central bank in a circular on May 16 offered the waivers to the loan defaulters.
Experts criticized heavily the latest Bangladesh Bank policy allowing defaulters to reschedule loans by paying 2.0% down-payment for a maximum period of 10 years.
They think that offering such a benefit will increase the number of wilful defaulters and discourage good borrowers from repaying loans.
On Tuesday, a writ was filed on behalf of a human rights organization, Human Rights and Peace for Bangladesh, seeking suspension of the circular.
In response, the High Court on the day ordered a halt till June 24 to the Bangladesh Bank circular.
A bench of Justice FRM Nazmul Ahasan and Justice KM Kamrul Kader issued the order after hearing a petition filed by lawyer Manzill Murshid.
