The Appellate Division of the Supreme Court (SC) yesterday stayed for two months a High Court (HC) order that imposed a status-quo on a Bangladesh Bank circular allowing special concessions accorded to loan defaulters by rescheduling their loans with a repayment period of up to 10 years.

A four-member Appellate Division bench headed by Chief Justice Syed Mahmud Hossain came up with the order after hearing on a petition filed recently by the finance ministry seeking a stay on the HC order. However, the apex court issued a condition saying if anyone takes the special concession, the individual/entity would not be allowed to take further loan from any bank within two months.

The apex court also asked the HC bench led by Justice JBM Hassan to hear and dispose of the petition filed in this regard in next two months.

The central bank on May 16 posted the circular on its website, allowing loan defaulters to reschedule their bank loans by paying two per cent down payment and securing further loans. But the High Court, on May 21, imposed the status-quo for one month on the Bangladesh Bank circular after holding hearing on a writ petition filed by Human Rights and Peace for Bangladesh (HRPB) challenging the central bank order. The court, on June 24, extended the status-quo for two more months.