The High Court (HC) has upheld the central bank's amnesty to loan defaulters, allowing them to reschedule classified loans with 2.0 per cent down payment and 9.0 per cent interest over 10 years.
The court issued the order on Sunday after hearing a writ petition challenging the legality of Bangladesh Bank's (BB) circular offering the privilege, according to a bdnews24.com report.
It also ordered the formation of a committee to make recommendations on the matter in view of the purported shortcomings of banks in approving and recovering loans.
The High Court on May 21 had put a freeze on the circular responding to an appeal from the Human Rights and Peace for Bangladesh, a human rights organisation.
The top court subsequently halted the stay order for two months but barred those availing the privilege from borrowing funds from any other bank during that time.