Upon His Majesty’s command, the government waived off interest on the loan for all youths who went to Japan through Learn and Earn Programme. The government is paying interest on behalf of the youths.
Prime Minister Dr Lotay Tshering handed over the E-Fund amounting to Nu 109.12 M to Bhutan Development Bank and Royal Insurance Corporation of Bhutan today. This includes the loan interest waived off of the youths and the interest and principal amount waived off of three youth.
The interest waiver, the Prime Minister said, is Kidu from His Majesty The King to the youths who went to Japan through the Learn and Earn Programme.
For the youths who have been paying interest till now, the amount paid will be considered as repayment of their principal amount. Each one of them were to pay interest ranging from Nu 151,000 to Nu 284,000 on their loan term.
The government also paid the outstanding principal and interest for two youth who lost their lives and the outstanding principal and interest for Sonam Tamang who is currently on life support in Japan. The Prime Minister also shared that the government is preparing to bring in Sonam Tamang from Japan towards the end of this month which would incur USD$ 14,000 to the government.
The programme which involves Bhutan Employment Overseas (BEO) has become controversial after the parents and the youths accused BEO of various misconducts.
They accused the agent of procedural lapses, document forgery in implementing the programme, overcharging the students beyond the agent fee of Nu 57,000. The students also complained of not being able to cope up with harsh working conditions and stress, and not being able to repay the loan from their earnings.
They lodged a complaint with the Thimphu Police last year. Following an investigation, Thimphu Police forwarded the case to the Office of the Attorney General (OAG) in October last year. The case is with the Thimphu District Court after OAG found a valid base to prosecute the accused.
And following requests from the youths to waive off the loan amount, the government deferred the loan repayment for the youths in March last year.
743 youths availed loan more than Nu 511 M under the Overseas Education and Skills Development Loan Scheme to study and work in Japan.
Phub Gyem
