The Bhutanese Leading the way.
The business sector is not happy with the Royal Monetary Authority’s (RMA) imposition of a six-month cooling period of no loans if a loan becomes a Non-Performing Loan (NPL).
Bhutan Chamber of Commerce and Industry (BCCI) held a general meeting, in which people representing the various business sectors of the country were present. They raised issues on the NPLs impacting the private sector.
“We just had a strife from the pandemic, and due to the grace of His Majesty The King, we have been able to survive. Now post-COVID, we are trying to restart our business but the central bank has imposed a moratorium with a six-month cooling period which will hamper our businesses,” shared an attendee.
Most attendees raised similar issues stating that the economy and the business sector of the country will suffer due to the imposition.
“BCCI had numerous meetings with the Cabinet. I, personally, met with the Prime Minister and the Finance Minister. We have written letters to the RMA and I’m still trying to meet the Governor, but I haven’t gotten an appointment yet,” shared BCCI’s President, Tandy Wangchuk.
Although they have been contacting the government and RMA, the responses received have not been favorable.
President of the Construction Association of Bhutan, Tashi, said, “In my perspective, I feel that RMA imposed this moratorium because our foreign reserves are depleting. We do have Bhutanese currency, but we are import dependent. Whatever money we are loaned, it will go outside and I understand that.”
