Looking to start a business, expand operations or invest in new ventures? Bhutanese private businesses will soon have another avenue for financing through the OPEC Fund for International Development. A framework agreement with the Fund, which will provide loans and direct investment to local businesses, was introduced during the National Assembly yesterday.The agreement will allow the Fund to provide loans and other financial assistance to Bhutanese businesses. It will also enable the Fund to invest directly in local companies by purchasing shares.
The move is expected to create additional financing opportunities for entrepreneurs looking to start businesses, expand operations or invest in new ventures.
The agreement also provides tax exemptions to the Fund on its income, assets and payments related to its operations in Bhutan. However, its financing activities will remain subject to government oversight.
Finance Minister Lekey Dorji said the Fund must notify the Ministry of Finance and submit a written proposal before financing any project. The government can object to a proposed project, preventing the Fund from proceeding.
The agreement will remain in force indefinitely, although either party can terminate it by giving six months’ written notice.
The National Assembly has forwarded the agreement to the Women, Children and Youth Committee for further review. Deliberations will continue next month.
Deki Lhazom
Edited by Passang
