The main reasons for the occurrence of non-performing loans have been cited to be due to weak loan appraisal systems of banks and clients failing to adhere to the bank terms and conditions. This is according to the Finance Minister who was responding to a question during the National Assembly question hour today. Lyonpo said the government is proposing loan rescheduling to the Royal Monetary Authority and recommending banks check the credit quality of clients before approving loans. Non-performing loans are loans with payments that are overdue by 91 days or more.
