Druk Holding and Investments (DHI) and Loden Foundation have collaborated to jointly promote entrepreneurship in Bhutan by providing a new business financing window “Loden-DHI Fund” to aspiring entrepreneurs.
It was launched on September 2, in commemoration of the 60th Birth Anniversary of His Majesty the Fourth Druk Gyalpo Jigme Singye Wangchuck. Nu 20 million
was handed over to the President of the Loden Foundation, Dr Karma Phuntsho, by the officiating CEO of DHI, Dr Damber S Kharka.
According to Dr Damber S Kharkha, DHI saw the potential in Loden Foundation, in terms of expertise, in helping people set up business, providing funds, and monitoring the progress.
The fund is to be managed by Loden Foundation. It will provide a collateral and interest free loans to entrepreneurs interested in starting a new business or expanding an existing business based on the capital requirement. The aim is to also combat the rising youth unemployment issues, and to contribute towards economic development. The fund, provide half by Bhutan of Bhutan, will also promote private sector development in Bhutan. The call for business proposals will be made by September 5.
Dr Karma Phuntsho said that the state has been the main driver for the economic development in the country, but if the country’s economy has to really change and become strong, it is the private sector that has to be the engine of economic development and growth.
“It is a unique event in the history of Bhutan, and it is a milestone in the transitional (from state- owned to private) phase of development,” he expressed.
An official from DHI said that the fund will be back to DHI within 5 years. “But there is no stringent deadline, it is interest free and the main purpose is to promote business,” she said.