Reforms in the state-owned banks will dominate the discussion between the government and an upcoming mission of the International Monetary Fund.

The IMF team led by David Cowen, the lender's mission chief for Bangladesh, Asia and Pacific Department, will arrive in Dhaka on November 27 on a two-week visit.

An official of the finance ministry said the mission will hold a final discussion on how much the government has fulfilled the lender's conditions tagged with releasing the second instalment of $1 billion loan.

After detection of irregularities, including the Hall-Mark scam, in the state banks, the global lender asked the central bank to conduct a special "diagnostic examination" in these banks.

The IMF earlier submitted a detailed plan about the examination to the central bank. The IMF mission will want to know about the status of its implementation.

To discuss the visit of the IMF mission, the lender's representative in Dhaka Eteri Kvintradze met Finance Minister AMA Muhith yesterday.

The IMF team will hold talks with the government on issues such as financial soundness indicator, deposit mobilisation and liquidity situation in the state banks.

The new VAT law, amendment to Banking Companies Act, and subsidy on petroleum, fertiliser and electricity will also figure prominently at the discussions.

The IMF delegation will also hold meetings with the officials of the World Bank and the Asian Development Bank.

They will discuss the update on the Padma bridge financing, as well.

The IMF approved around $1 billion loan under its Extended Credit Facility in April and its first instalment worth $140 million has already been released.

Though the second instalment was scheduled to be released in November, the finance ministry official said it may be delayed as the government is yet to fulfil the conditions of the lender.

News: The Daily Star/Bangladesh/16-Nov-12