BCCI submits suggestions to RMA on loan deferment for private sectors

The submission also includes SMEs and soft loans for the eastern hoteliers to promote northeast Indian tourists

Bhutan Chambers of Commerce and Industry (BCCI) has made some suggestions on loan deferment of two years for all the private sectors to the Royal Monetary Authority (RMA).

Aside from categorizing in monetary measures phase IV (MM4), the president of BCCI, Tandy Wangchuk said that BCCI has submitted to have one category rather than segregating like high, moderate, and low risk on loan deferments.

“If loan deferment was given equally to all the private sectors and reviewed accordingly with the growing situation of the country’s economy. It will be more convenient,” he said.

However, the submission also includes small and medium-sized enterprises (SMEs) and soft loans for the eastern hoteliers to promote northeast Indian tourists.

According to the president of BCCI, SMEs which consists of 75% of the private sectors in the country but were also not included in MM4. “During the consultation meeting with the cabinet and BCCI, these suggestions were also submitted,” he said.

“Many of the notifications including MM4 did not cover all the areas and the specification of the private sectors were done without any larger consultation and studies with the private sectors,” he said.

In addition, he shared all the sectors are being affected in the last two years, however, as per the notification of the RMA, only the hotels and restaurants are put under the high risk where it covers two-year deferment and the gestation period.

Further, the president said the moderate risk includes entertainments, handicrafts, hospitality, and mining among others where it is deferred for one year, similarly, low risk there is no deferment but only the extension of gestation period of two years depending on the progress of the businesses.

Meanwhile, BCCI also submitted a letter to the Ministry of Finance (MoF) to consider a few of the submissions made by BCCI.

Regarding Non-performing Loan (NPL), the president of BCCI, Tandy Wangchuk said that the private entity has to pay NPL before the pre-covid which is April 2020.

“If there is NPL after April 2020, which is during the pandemic time, the bank interest of 50% is deferred. That means 50% of the interest is deferred in a separate account without having to pay the interest,” he said.

He added that the bank may make quotient time depending on the operation of the business entity. “However, we advise business entities to pay equated monthly installments (EMI) so that in near future they won’t struggle,” he said.

He shared that 50% of the loan repayment is granted from His Majesty’s relief kidu fund and the remaining principal amount will be rescheduled by the bank as per the operations of the business entity.

Sherab Dorji from Thimphu