English | Dzongkha Friday, October 20, 2017

Credit to trade and commerce sector increases

Nidup Gyeltshen, Thimphu
May 25, 2016

Credit to trade and commerce sector increasesCredit to the trade and commerce sector increased by over Nu 4 B.

Bankers and officials from the finance ministry said, priority sectors such as trade, tourism and agriculture has been receiving more credit from the banks since, last year.

The financial institutions dished out an additional Nu 10 B as credit to the economy, last year.

Bankers said the trade sector receiving more credit from the banks was indicative of a growing economy.

“Right now, the focus is on the trade and services sector, which gives you an indication where the economic activity and the consumption is taking place. Today, it has contributed to the economy leading to increased GDP growth rate,” said Druk PNB’s CEO, Mukesh Dave.

However, it could also lead to more outflows and trade deficits due to increase in imports.

Steps may have to be taken to reduce outflows that may lead to huge trade deficit in the long run.

Among various sectors, building and construction continued to receive the largest share of credit.

And despite significant increase in import of private vehicles, many buyers did not avail transport loans to buy cars. In fact, transport loans increased by less than a billion in 2015.

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