The Bhutanese Leading the way.
As the June deadline approaches for the end of loan deferments granted to hotels affected during the COVID-19 pandemic, banks have begun reaching out to hoteliers to evaluate their financial readiness to resume repayments.
Several hotel owners have been receiving calls from loan officers in recent weeks. One hotelier said, “Our loan manager called us asking if we wanted further loan deferment and requested our profit and loss statement from our BIT filing. I told them we did need an extension, but they said it was uncertain whether we would actually receive another deferment, as the final decision lies with higher authorities and that they will be sending the report and feedback collected to the relevant authorities.”
However, not all hotels have received such communication. “I asked a few of my hotelier friends, and they said they hadn’t been contacted yet,” the hotelier added.
Another hotelier said that their loan officer called and asked if they were ready to start repaying their loans when the deferment period ends. They also asked the hotelier if they needed further deferment. The hotelier said that it seemed like the banks were collecting the information to understand how many of the hoteliers are actually in a position to start paying again once the deferment ends.
A representative from the Bhutan National Bank (BNB) confirmed that the bank has started assessing the business status of hotels that had received loan deferments.
The BNB representative said, “We are reaching out to hoteliers to understand their current income and occupancy rates. We’ve made personal visits to some properties and currently compiling feedback. We’re also evaluating what additional support, such as loan tenure extensions, could be offered.”
The bank further stated that this was an assessment taken up by the bank itself since the deferment period is nearing. The report and feedback, according to the bank, will be ready towards the end of May.
The Bhutan Chamber of Commerce & Industry (BCCI) is also stepping in to support the private sector.
BCCI will be working closely with Financial Institutions (Fis) to explore possible relief measures for highly impacted sectors such as tourism and agriculture. These may include restructuring loan repayment schedules, offering interest rate reductions, or even considering partial loan write-offs for the most severely affected businesses.
The Minister of Industry, Commerce and Employment, Namgyal Dorji, said, “Discussions are underway and we are considering options and should have something concrete in May.”
As of February 2025, of the Nu 34.141 bn loan deferral, the biggest is Hotel and Tourism with Nu 14.323 bn, of which Nu 13.619 bn is for hotels, Nu 267.16 million (mn) for travel and ticketing agencies, Nu 274.98 mn for home stays and guest houses, and Nu 162.28 mn for restaurants and bars.
