The Bhutan Chamber of Commerce and Industry or BCCI, has raised concerns regarding the government’s recent decision to disburse Economic Stimulus Programme loans through the Bhutan Development Bank. At a recent Private Sector Press Conference, the BCCI shared challenges such as the loans not covering many in the private sectors.
Earlier this month, the government mandated that loans under the Window-I to be processed exclusively through the Bhutan Development Bank.
Window-I supports new businesses and the expansion of existing businesses in targeted sectors.
Previously, loans under this category were available in multiple financial institutions.
This, the BCCI said offered applicants more flexibility and faster access to funds.
Tandy Wangchuk, BCCI President said “Those who have applied for loan at other financial institutions have to start from scratch when they apply at BDBL even though the projects were almost approved. Secondly, their regulations are too much. Therefore, many do not qualify for it.”
He added that the BCCI is currently discussing with the government to diversify the ESP loans.
Other BCCI members shared that businesses at the grassroots are not able to access the loans.
BCCI President said “Through window-II, 13 projects were approved and 66 are under reassessment. However, many are confused because of the new regulation.”
The loans through Window-II are to help distressed borrowers with businesses that have the potential to recover from COVID-19 impacts and other external factors.
Singye Dema & Kinley Bidha
Edited by Tandin Phuntsho
