After the financial institutions suspended loans for construction sector, the most affected are the private construction owners in the capital. Most of the people, BBS spoke to said, their plans to build houses will only materialise once the banks start giving out loans.
The loans were suspended in March this year following rupee shortfall in the country.
Babesa in Thimphu falls under the town plan. And in the last couple of years constructions started booming in the area. However, many sites now wear a forlorn look, as the owners haven’t been able to proceed given the suspension of loans.
A few of the owners BBS spoke to said they have the drawings of their buildings approved. Some of them have invested their savings in acquiring raw materials.
“I have four kids and I have no proper place to live. As a temporary solution I am living in a makeshift hut. I have planned to construct a house for past two years. By the time the drawings for my building was approved, the loan system was suspended,” said one of the building owners.
Some of them are hoping that the financial institutions in the country will soon start giving the loans again. “It is a huge problem for people like us who do not have much cash,” said Tenzin, a land owner in Babesa.
The Chief Executive Officer of the Bhutan National Bank, Kipchu Tshering, said because of the liquidity crunch most of the financial institutions will not be in the position to give loans even if the suspension is lifted.
Currently, there are 380 buildings in the capital that are under construction.
