High Court questions Bangladesh Bank's power to write off loans
Staff Correspondent, bdnews24.com
Published: 2017-03-02 01:52:36.0 BdST Updated: 2017-03-02 01:53:09.0 BdST
The High Court has questioned the Bangladesh Bank's power to write off loans and asked for a list of the business entities and individuals whose loans were waived until Dec 31 last year and the amounts.
The Bangladesh Bank governor will have to submit the list within 30 days from Tuesday, Deputy Attorney General SM Moniruzzaman told bdnews24.com on Wednesday.
The governor was also asked to inform the court whether any of the companies or individuals were also enjoying any other loan facilities and, if so, the amount of such loans.
A High Court bench set Apr 2 to deliver further orders on the suo moto rule issued following a newspaper report.
English daily The Asian Age published the report titled 'The Tk 30,000cr vanishing trick, 60% of defaulted loans from public banks written off' on Feb 26.
The amount is more than enough to take care of the education budget for this year, according to the report.
According to the Bangladesh Bank, the amount of waived loans is around Tk 450 million while the amount of defaulted credit is Tk 650 million.
The banks have been writing off loans in line with the Policy for Loan Write Off included in the Prudential Regulations for Banks.
The Bangladesh Bank states in the policy: "Banks may, at any time, write off loans classified as bad/loss. Those loans which have been classified as bad/loss for the last five years and for which 100% provisions have been kept should be written off without delay."
Besides the Bangladesh Bank governor, the finance secretary, Banking Division secretary, law secretary, the comptroller and auditor general, and the central bank's Banking Operation Division general manager have been made respondents of the rule.
The registrar general of the Supreme Court was directed to communicate the order to all the respondents by 'special messenger'.
Any unauthorised use or reproduction of bdnews24.com content for commercial purposes is strictly prohibited and constitutes copyright infringement liable to legal action.
- Bangladesh Bank officials face questions over fire in office building
- Direct train line to Darjeeling to run after fifty years
- Tripura to have three railway links with Bangladesh, says Indian minister
- US may accuse North Korea of theft of Bangladesh reserves at New York Fed: Wall Street Journal
- NSA official points the finger at North Korea in Bangladesh Bank heist
- New draft law proposes official clearance mandatory for building houses in villages
- World economy picks up after decade of stagnation
- Rooppur N-power plant: Bangladesh, Russia agree on spent fuel management plan
- Planning ministry detects misuse of fund in Chittagong court building construction
- Inflation rose again in February
- Former Indian army veterans all praise for Bangladesh para-commandos
- Rain sinks Sri Lanka hopes after Mendis century, Taskin hat-trick in Dambulla
- Autopsy done on bodies of two militants killed in Sylhet
- Visitors barred at Dhaka airport terminals to beef up security ahead of IPU Assembly
- Police get control of Sylhet’s 'Atia Mahal' as army ends 'Operation Twilight'
- Bombs turned Atia Mahal into a death trap, says army after Operation Twilight
- Four suspects dead inside Sylhet's terror den, army to continue operation
- Bangladesh information minister backs controversial Section 57 of ICT Act
- MP Salim Osman to face trial for publicly humiliating school teacher
- Indian visa rules for Bangladeshis relaxed further