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Bhutan’s borrowings increase by Nu 15 B

May 18, 2016
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Bhutan’s borrowings increase by Nu 15 BDespite the government’s serious effort to reduce government debt, the economy’s total borrowings increased by over Nu 15 B between 2014 and 2015.

The government’s debt increased from Nu 119 B to Nu 134 B in the same period.

The finance minister, Namgay Dorji attributes the increase to hydropower loans which increased from Nu 79 B to Nu 94 B.

“These were mostly taken for the ongoing hydropower projects including Punatshangchhu I and II and Mangdechhu.”

Despite the huge increase, officials from the finance ministry said the non-hydro debt component is below 35 percent of total debt as required by the National Debt Policy.

Lyonpo Namgay Dorji said the non-hydro loan decreased from Nu 36 B to 34 B.

 

 

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