As of 14th May, over Nu 800 M Economic Stimulus Programme loans have been disbursed to 1,284 applicants nationwide. The Bhutan Development Bank Limited received close to 4,000 applications for ESP loans, out of which nearly 1,200 applications were declined and close to 1,500 applications were approved.
Chhukha, Thimphu, and Samtse are districts with the highest ESP loan applicants. Moreover, Chhukha also has the highest number of approved applications, at nearly 180 out of almost 520 applications.
Similarly, Trashigang has the second highest approved applications at more than 150, out of almost 300 submissions. The district has disbursed loans amounting to Nu 50 M and rejected around 45 applications.
According to BDBL officials of Trashigang, some applications were rejected because of repetitive loan proposals from their earlier activities, unclear project proposals, and incomplete documentation.
“The applications got rejected as farmers do not have a good credit history record with our bank. Most farmers have availed loans from us before, which were not recovered, so we have to reject such applications,” said Tshewang, BDBL Chief Manager, Trashigang.
The agriculture and livestock sector received the highest number of ESP loan applications, at nearly 3,250 applications. Of these, over 1,250 applications were approved. A total of Nu 500 M has been allocated to support this sector under the Economic Stimulus Programme.
In terms of amount, medium-scale businesses in the production and manufacturing sector account for the highest loan amount approved, crossing Nu 1bn. The sector also received the largest share of the ESP fund allocation, with Nu 1.8bn.
According to the ESP Secretariat office, they carry out monitoring and evaluation with Bhutan Development Bank Limited to ensure that the loan is not misused.
“It is the responsibility of BDBL. Firstly, they have to assess financial viability, and when they give a loan, they do not give the amount at once. They give it in phases upon monitoring the project and assessing its progress,” said Rabden Drakpa, the business analyst with ESP Secretariat.
The Economic Stimulus Programme was launched in May 2024 with a budget of Nu 15bn, funded by the Government of India. The programme aims to support Bhutan’s economic recovery from the impacts of the COVID-19 pandemic.
Sangay Chozom & Sonam Darjay, Trashigang
Edited by Phub Gyem
