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In a major policy change, the government Thursday decided not to completely privatise Rupali Bank but to offload 70 to 75 per cent of its share capital.
"We want the government to retain 20 to 25 per cent share of the Rupali Bank," Finance Minister M Saifur Rahman told reporters after a meeting with International Monetary Fund (IMF) and World Bank officials Thursday.
Last year, the government decided for complete divestment of the Rupali Bank which is now partly privatised and had appointed foreign consultants to carry forward the process. But now the government wants to follow the example set for privatisation of state-owned banks by the neighbouring countries like India and Pakistan.
IMF adviser for Asia Pacific Department Nissanke Weeransinghe, who attended the meeting, did not disagree with the new idea of privatising the bank partially, Saifur Rahman added.
The review meeting on modernisation of the existing nationalised commercial banks (NCBs) and Poverty Reduction Growth Facility (PRGF) project was also attended by the high government officials.
Weerasinghe said the outcome of the meeting was fruitful but his organisation would like to see the implementation of the government policy on PRGF before disbursement of the fourth instalment worth US $ 70 million under the PRGF.
Bangladesh is due to receive a total of $490 million under the PRGF.
"The schedule of the meeting on disbursement of the fourth instalment depends on implementation of the policy by the government," he said.
The disbursement of fourth instalment was due last month. But IMF has delayed the disbursement due to various reasons including difference between two sides on injection of capital into the Rupali Bank, sources said.
The IMF wanted the government to pump in Tk 25 billion for re-capitalisation of the bank before privatising it. But the government considers that Tk 5.0 billion is enough for the purpose, they added.
"We have closed the gap on the issue of re-injection of capital as both sides showed positive attitude during the meeting," said Saifur Rahman adding that many other differences including one related to board of management were sorted out.
But the IMF expressed dissatisfaction over the government revenue collection and suggested improved performance by the National Board of Revenue by April next to avail the fourth instalment, he added.
Saifur Rahman hinted tough measures against the tax dodgers to mobilise revenue collection as import cost has increased considerably this year due to rise in price of sugar, steel, wheat, petroleum products and rice in the international market.
However, revenue collection from such imports has not been increased due to tax adjustment following flood and poor crop output, he observed.
BSS adds: The IMF will soon release the fourth instalment of its US$ 490 million fund for Poverty Reduction Growth Facility (PRGF) for Bangladesh.
The decision came at a meeting between Finance and Planning Minister M Saifur Rahman and the visiting mission of IMF at secretariat here today. Advisor of IMF Asia and the Pacific Region Nissamke Weeransinghe led the mission.
During the meeting, the members of mission exchanged views with the finance minister on various aspects of reform in the banking sector to strengthen it further, expedite the efforts for revenue collection and increase the availability of local resources.
Governor of Bangladesh Bank Dr Fakhruddin Ahmed, finance secretary Zakir Ahmed Khan, chairman of National Board of Revenue Khairuzzaman Chowdhury and David Hugart of the World Bank were also present at the meeting.
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