The BCCI has submitted a series of recommendations to the PMO and the Finance Ministry following the announcement from the RMA about the ending of tenure for interest waiver
The Bhutan Chamber of Commerce and Industry (BCCI) is waiting for consideration from the government regarding the points they submitted as post-June measures for businesses in the country.
The submissions made by the chamber include the support measures for business in the gestation period, breach loan, ballooning system of Equated Monthly Instalment (EMI), long tenure loan, Minimum Loan Rate (MLR), better data management, enhancing liquidity in the banking sector, valuation of assets and micro finance amongst others.
The BCCI President told Business Bhutan that the chamber did not hear anything from the government or the Royal Monetary Authority (RMA) after submitting the post-June monetary measures 2022.
According to the president, the only thing they got is an executive order from the RMA to the banks in mid-June where the private sector was given some sort of alarming message to pay the loans and they would be taken to the court accordingly if necessary after three Non-Performing Loans (NPLs).
“The information was shared to the private sector members where they then raised to the chamber,” said the President, adding that the chamber then immediately called up the Prime Minister and the Finance Minister.
“The executive order issued by the RMA was not very feasible to the private sector as the decision was taken without consultation with the private sector and the executive order was issued,” said the President.
During the recent meeting with the Prime Minister, the BCCI President divulged that the chamber made a few submissions.
“Though the RMA did their best part, the chamber asked for some accommodations made by the private sector to the government,” he said.
According to the president, the most highly impacted are those in the Micro, Small, and Medium Enterprises (MSMEs) and include existing traders operating small grocery shops in remote dzongkhags, small restaurants, and barbers, amongst others.
“The MSMEs have not been reflected in the phase IV monetary measures and the chamber submitted their challenges. We are hoping to hear from the government very soon,” said the president, adding that many issues were though resolved with the fiscal incentives.
“Similarly, 50% interest is a Druk Relief Kidu whereas 50% will have to be paid by the individual starting from this month, BCCI submitted that it will not be possible to pay the interest looking at the economic conditions but rather to park separately without the interest rate.”
Amongst others, soft loans for tourism in the central and east are also the submission made by the BCCI.
The president said that the submissions made by the chamber are very much reasonable and they have done a thorough larger consultation.
‘Only the reasonable and general points were assessed by the chamber and then submitted to the government,” he said.
“We are not asking for a waiver but we are only asking for term deferment,” said the president.
Sherab Dorji from Thimphu