In accordance with the directives from the Royal Monetary Authority of Bhutan, dated 10 May 2022, all kinds of loans including Bank Guarantee (BG ) are suspended until further notice for Bhutan Development Bank Limited, Royal Insurance Corporation of Bhutan Limited and National Cottage and Small Industry Development Bank in the view of high non-performing loans. As of 13 May sanctioning of new loans has been stopped for them.
The CEO of BDBL Phub Dorji said, “We have quite a number of loan applications that are still pending from before 13 May from Branch offices all over Bhutan. We will process and disburse all loan applications received by the bank before the loan freeze was implemented. Currently the NPLs are at unacceptable levels.” In order to reduce the NPLs, the BDBL intends to recover loans from clients.
Kezang, the CEO of NCSI bank said, “We have submitted remedial measures to the RMA to bring down NPLs.”