PM says he has asked BDBL what is happening in the other branches and that he has also conveyed to the Central Bank that there won’t be any country that has closed loan facility for almost one and a half years
In what is one of the latest developments in the Bhutan Development Bank Limited (BDBL), the bank will soon resume providing credit (loans) in 11 of their branches.
This was shared by Prime Minister (PM), Dr Lotay Tshering during the 4th Monthly Last Friday Meet (MLFM) held on May 26, 2023 with representatives of the private sector.
The answer was in response to questions from representatives of the private sectors who asked if BDBL could resume the loan since it has almost been two years and that people living in the rural areas face challenges.
A representative said that aside from BDBL, if other bank could also provide loan as per the valuation of the land from National Land Commission (NLC), it would be very beneficial.
Responding to this, the PM said that the government has also talked with the Central Bank, if rural land could also be valued at worth of Nu 3-4mn. However, the PM shared that as per the Central Bank, there are risks, which could lead to more non-performing loan (NPL) after 10-15 years.
“For almost one and half year, the BDBL and the National Cottage and Small Industries development bank has absolutely closed the loan scheme which we are well aware of. It would be wrong not to open these loan schemes to the public,” the PM said.
The PM shared that with this regard the government has been following up with the Central Bank. “Even the government has been asking the Central Bank that there won’t be any country that has closed loan facility to the public for almost one and half year and has been asking the Central Bank to look into this,” the PM said.
“We are well aware that BDBL is a development bank where about 65% of the clients are farmers in the country and due to this the government has been following up with the Central Bank and the government has been recently informed that BDBL would open loan facility in the eleven BDBL branches,” the PM added.
“The government also asked that what the bank is doing in the remaining branches,” the PM said, adding that I have asked the bank to share what is happening with the remaining branches in the country.
Meanwhile, selective products will be provided through 11 BDBL branches across the country according to the BDBL.
For now, BDBL will resume giving special education loan from 3rd of June for those who wants to pursue studies abroad; this is according to the recent notification from the BDBL.
The special education loan can now be availed from the Thimphu main branch office of BDBL.
Sherab Dorji from Thimphu