Loan regularisation deadline extended again 

The Bangladesh Bank, for the second time, has extended  the deadline for regularising loans under the widely criticised special policy on large loan rescheduling.

The loan defaulters can now apply for the rescheduling facility until October 20, says a Bangladesh Bank circular, issued on Tuesday. The new deadline was set following a High Court order.

Earlier, the central bank extended the initial deadline, which expired on August 16, to September 7.

In May 16, the Bangladesh Bank issued the circular on special loan rescheduling policy allowing the defaulters to regularize their loans for 10 years by making 2 percent of loan amount as down payment instead of the existing 10 to 15 percent.

Defaulters were asked to apply under the policy within 90 days of the circular being issued.

On May 21, the High Court (HC) issued a status quo till June 24 on the central bank’s circular following a writ petition filed by Human Rights and Peace for Bangladesh (HRPB).

On July 3, the chamber judge of the Appellate Division of the Supreme Court (SC) stayed the HC order till July 8 and sent it to the SC full bench.

On July 8, the Supreme Court (SC) extended for two months its stay on a HC order that halted the BB circular.

The apex court however issued a condition saying that the loan defaulters would not be allowed to get further loans by depositing two per cent down payment of the total loan amount.