The Dzongkhag Tshogdu (DT) members in Samtse discussed the struggles of villagers who are not able to pay back loans they availed from the Bhutan Development Bank Limited (BDBL). They say some are in prison for loan default.
Opening the discussion during the meeting, the Pemaling Gup, Khem Raj Ghalley said, between 2008 and 2014 farmers availed themselves of loans from the BDBL and made a good income by cultivating cash crops. But after 2014, loan repayment has been a challenge.
“People availed themselves of loans with high hopes of helping their family by cultivating orange, ginger, and cardamom. But since 2014, because of various plant diseases, people are struggling to repay their loans.”
According to the gup, around 50 farmers from his gewog were taken to court and some were even imprisoned.
“We would be glad if the interest on loans and penalties could be waived-off. After doing so, people may be able to pay the monthly instalments regularly. That is why if the DT could discuss and write to the bank authority sharing our grievances.” Sangay Penjor, the Pemaling Mangmi, said.
The BDBL office in Samtse said they cannot keep interests on hold unless their head office or the Government intervenes.
“According to our regulations, they have to pay the instalments at least by the third month. After three-month default, we sent them a notification. We sent them three notifications that add up to six months. After that, we go meet the clients in person and they just say their cardamoms died,” Tshering Tobgay, the Credit Assistant of Samtse BDBL, said.
The DT after deliberations decided that it is not in their powers to do anything on the matter. However, the House will take up the issue with the Government to see what can be done.
Sherub Dorji