English | Dzongkha Friday, August 17, 2018

Better Business Summit looks at improving access to finance for CSIs

Pema Seldon Tshering, Thimphu
May 21, 2018

Improving access to finance for Cottage and Small Industries (CSIs) dominated the discussions at the “Better Business Summit,” held recently in the capital.

Bhutan has 21,000 licensed business establishments. Of that, 19,000 are Cottage and Small Industries (CSIs). At the summit, proprietors of CSIs shared about their uphill struggle in getting access to funds and other financial support such as loans from financial institutions.

They said, without collateral, banks do not grant loans. However, international experts present at the summit suggested CSIs to have insurance for business entities, which will enable them to process loans without collateral.

“For instance, a lot of people want to do agro businesses, but what happens if they business crumble due to natural calamities such as floods? So it’s important for them to insure their business,” said the Chief Executive Officer of Bhutan Development Bank Limited, Phub Dorji.

The Prime Minister, Dasho Tshering Tobgay attended the inaugural of the summit. He addressed to the congregation that the business meeting like this will provide strong basis to reform the private sector.

“I see an opportunity for the private and public sectors to further understand and shape our direction of economy. I also see the opportunity for the government agencies and the private sector to learn from the global development experiences and integrate and economic reform agenda within the 12th Five-Year-Plan.”

The government and the Asian Development Bank in collaboration with relevant stakeholders organised the summit.

 

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