As per the conditions, government will shoulder responsibilities for default public and private loans of the bank and as such the public sector default loans of public sector would be turned into a single loan for a five-year term and then the total amount be paid through treasury bills.

The government will pay the accumulated amount in seven half-yearly instalments.

Sources in the Privatisation Commission said the amount of default loans of Rupali Bank in public sector stands at around Tk 1000crore. And for the default loans in the private sector, the government will be issuing a bond.

The conditions envisaged in the proposal also bind the government to inject any capital shortfall of the bank's 26 percent share it holds.

The government in a scheme will have to pay pensions of the bank staff retiring before the bank's final takeover.

To reduce the bank's workforce before its total privatisation, its members of the staff aging above 50 years would be offered a voluntary retirement scheme (VRS).

Sources said along with the conditions, proposal for selling the bank to the highest bidder, Prince Bandar Bin Mohammad Bin Abdulrahman Al-Saud, at $330 million would also be placed before the committee for its approval.

If the committee approves the proposal, then the government will need to make a sale and purchase deal with the prince.

Sources said the prince will pay the whole amount in a single chunk before reaching such an agreement.