Around 3,526 applications, amounting Nu 11.83 billion, are being assessed

Thukten Zangpo

The Bhutan Development Bank Limited (BDBL) has disbursed loans amounting to Nu 268.93 millions to 546 applicants under the Economic Stimulus Programme’s (ESP) concessional credit as of December 31 last year.

This comprises 8.2 percent of the Nu 3.3 billion total fund allocated under the Window-I concessional credit.

The Bank had approved 597 loan applications amounting to Nu 299.85 million. However, it received 4, 123 applications, amounting to Nu 12.13 billion.

The Bank rejected 221 applications, amounting to Nu 287.99 million. The remaining 3, 526 applications, valued at Nu 11.83 billion, are being assessed by the Bank.

The ESP operates through two windows: Window-I offers collateral-free concessional loans at four percent interest rate, while Window-II, the reinvigoration fund, provides four percent interest subsidy on both new and existing loans for businesses affected by the pandemic.

Nu 3.3 billion has been allocated for Window-I and Nu 2 billion under Window-II.

The concessional credit is managed exclusively by the BDBL.

Among the sectors, primary (agriculture and livestock) received the highest loan applications of 3, 435 valued at Nu 2.92 billion, of which 509 applications worth Nu 227.77 million were approved.

The Bank disbursed Nu 208.05 million to 469 applicants—208 applications valued at Nu 134.88 million were rejected in the agriculture sector.

Remaining 2, 926 applicants, amounting to Nu 2.69 billion, are being assessed.

For the agriculture sector (loans up to Nu 1 million), the government allocated a fund of Nu 500 million.

In the production and manufacturing sector, except for services, construction and mining in raw form, the Bank received 688 applications, amounting to Nu 9.21 billion, of which, 88 applications, amounting to Nu 72.08 million, were approved.

The Bank disbursed Nu 60.88 million to 77 applicants, while 600 applications, amounting to Nu 9.14 billion, are still under assessment.

The sector was allocated Nu 2.8 billion from ESP.

Under the production and manufacturing sector (up to Nu 10 million), the loans to scale up existing startups received 89 applications valued at Nu 68.58 million and 47 applications for movie production valued at Nu 333.32 million. The Bank is currently assessing the proposals.

The ESP has allocated Nu 300 million for loans to scale up existing startups and Nu 200 million for movie production.

Under the production and manufacturing sector (Nu 10 million to 100 million), the Bank received 126 applications worth Nu 7.66 billion.

Among the applications received, five, amounting to Nu 130.28 million, were rejected and others are being assessed.

Launched in May 2023, the Nu 15 billion ESP is a key initiative designed to stimulate Bhutan’s post-pandemic economic recovery with the primary focus on supporting businesses affected by Covid-19.

The ESP was officially implemented from September last year.