Response to BCCI says Bhutan will have ‘No Economy’ soon if govt does not step in
Can someone explain to me the headline of “No Economy soon”? My limited understanding of this issue, is that maximum employment is in the civil service, farming or self employment in small businesses. Would these sectors suffer that badly or is it only a few large businesses making all the noise?
I’m sure there will be ripple effects when some of the large borrowers start collapsing under their debts. Is it a case of needing more loans to pay off other loans or is there just no money in the economy? Also how bad would it really be for the majority of the ordinary people?
Lot of people were taking loans and most making huge risks and spending unwisely and probably suffering the consequences now.
For individuals, a car loan is probably the most stupid loan to take unless you are already in good financial shape to pay for it or are going to use it to create some income.
Also, do our businesses actually create actual wealth? Our construction and manufacturing sector employs mainly expatriate workers and benefits only a few shareholders or partners and some to the state through undervalued taxes and royalties.
Car dealers only import vehicles and do not manufacture or employ huge number of people in Bhutan. They sell to locals through unadvisable loans, which only lead to increased fuel imports that benefit fuel commission agents only and maybe tax income for the govt (but bad balance of payments). In anycase, taxes on cars to reduce numbers or incentives to promote cleaner options will not work unless civil servant quotas are removed.
I am financially illiterate, and my economics is limited to ICSE economics, so I cannot judge what the business people say, but I’m always skeptical when big business make noise… of course, big is relative in Bhutan, but I would like to see a valid third party view on this rather than just the business or govt’s view on these matters.
Response to BKP offer’s ministerial berth to Opposition
This is a great initiative. Bhutanese constitution does allow one to have opposition members in the Cabinet. The only requirement to become a member of the Cabinet is to be an elected member of National assembly. As long as the party elected to power and its PM deems that the opposition member is highly capable to take up a ministerial portfolio, then i believe BKP’s offer is very gracious. I support this initiative
What comes through this news is that BKP is trying to be really engaging and take democracy to a higher level. This is a very noble gesture.
But the reality can be far from feasible or desirable. Not all members of that elected group will be as englighted as assumed to be.
One must walk a cautious path. It sure is a refreshing idea though.
Long live BKP and other parties also as now we will look forward to such competitive and alternative ideas.
By Haap Tenzin
Response to Liquidity crisis not to be used as “excuse” by private sector for defaulting on bank loans, Druk PNB Chief
I will not generalize, but there are business man who takes loan for some purpose say construction, but buy Land Cruisers. As he diverts the fund, the construction works suffer thereby the project is delayed and penalties imposed. Thus he ruins himself and Bank has lot of NPL. Few people take loan, marries a second wife and goes for a honeymoon to Bangkok, becomes broke and finally defaults on loans which again adds to the Bank’s NPL.
FIs should be really careful in sanctioning loans to people.