The Bhutanese Leading the way.
Following an announcement by the Royal Monetary Authority (RMA) on loan restructuring support measures regarding the loan deferral which ended on the 30th June, the Financial Institutions (FIs) have begun responding with internal reviews and client consultations.
RMA introduced seven restructuring options, including interest-only payments and payment moratoriums for up to two years. Other measures include capitalization of unpaid interest, extension of loan maturity terms, loan top-ups with collateral, loan splitting, and conversion of existing facilities to term loans. RMA has designated a three-month consultation period from July to September for FIs to assess and implement appropriate restructuring plans with their clients.
Bhutan Development Bank Limited (BDBL), which holds the highest number of deferred loan accounts. totaling 3,645 accounts and Nu 3.38 billion (bn), stated it is currently reviewing the implications of the RMA’s measures on its portfolio and clients. “In addition to implementing the RMA measures, the bank is also exploring possible supplementary interventions,” a BDBL representative said. These may include restructuring options, financial literacy programs, or sector-specific support. The bank emphasized a consultative approach, with a focus on long-term resilience for both clients and the institution.
Bhutan National Bank (BNB) said that it has begun receiving applications for tenure extensions and related requests from clients. “We are thoroughly reviewing them and hope to finish our consultations by the end of this month,” a spokesperson said. BNB is currently focusing on the seven RMA measures.
Bank of Bhutan (BoB) reported that it has developed additional restructuring guidelines, which are pending board review before being submitted to the RMA for approval. The bank has already engaged with its clients to understand their financial positions. “Once the additional restructuring methods are approved, clients may choose to adopt them,” BoB stated.
As of March 2025, the total value of deferred loans across the sector stood at Nu 29.618 bn. The hotel and tourism sector accounted for the highest deferred amount at Nu 11.724 bn. However, this only represents 35.50 percent of the total loans in the sector, which stand at Nu 33.051 bn. Other sectors with high deferral values include production and manufacturing, trade and commerce, and contractor loans.
