The term habitual defaulter is often thrown around casually, without any proper definition. But the government has now spelt out what habitual default is in a draft act, in what can be viewed as a commendable act by Finance Minister AHM Mustafa Kamal.

The actual size of bad loans is more than double the officially recognised figure, according to a recent report of the International Monetary Fund -- a damning evidence of the fragile state of Bangladesh’s banking sector.

The central bank extends rescheduling deadline for the loan defaulters until October 20.

The High Court questions the legality of a Bangladesh Bank circular allowing defaulters to reschedule their loan with a repayment period of up to ten years.

The Supreme Court yesterday expressed dissatisfaction at Bangladesh Bank for issuing a circular that allows defaulters to reschedule their defaulted loans for a period of 10 years upon a down payment of just two percent of the total loan amount, and to get further loans.

The Supreme Court stays till July 8 the High Court orders that halted Bangladesh Bank’s circular allowing defaulters to reschedule their loans with a repayment period of up to 10 years and get further loans.

She has underscored the need for reform in the country's financial sector and warned of taking stern action against wilful loan defaulters.