The Bhutanese Leading the way.
As the deadline approaches for the end of loan deferments granted to sectors impacted by the COVID-19 pandemic, including hotels and tourism, the Ministry of Finance (MoF) has initiated talks with the Royal Monetary Authority (RMA) and the Financial Institutions Advisory Board (FIAB) to assess the next steps.
MoF also stated that currently, Nu 2 billion (bn) has been allocated for the tourism industry under the Economic Stimulus Plan.
The deferment period is set to conclude on 30th June 2025, and discussions are underway to determine the most appropriate course of action for the affected sectors, including Non-Performing Loans (NPLs).
Some hotel owners have reported receiving calls from their loan officers, inquiring whether they would need further deferment or if they are prepared to resume loan repayments once the current deferment period ends.
One hotelier shared that their loan manager had asked for their profit and loss statements, and inquired about whether they would require additional deferment. However, the bank indicated that the decision on whether an extension would be granted lies with higher authorities, and the information would be submitted to the authorities.
As of February 2025, out of the Nu 34.141 bn in deferred loans, approximately Nu 14.323 bn has been allocated to the hotel and tourism sector. This includes Nu 13.619 bn 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.
In response to the ongoing discussions, MoF Secretary Leki Wangmo has assured that once the assessments with the RMA and FIAB are completed, the government will communicate at a later date to determine appropriate steps.
MoF also stated that the government is working towards boosting the tourism sector and making a concerted effort to increase tourist arrivals and encourage longer stays.
