Sherab Lhamo

“Government to Lift Bhutan Development Bank Loan Moratorium Soon.”

Finance Minister Namgay Tshering announced that the government plans to lift the loan moratorium on the Bhutan Development Bank Limited (BDBL) soon.

The moratorium, initially imposed in May 2022 due to concerns about escalating Non-performing Loans (NPL). It was partially lifted in March of this year.

The decision came to light during a National Assembly question-and-answer session, where Ugyen Dorji, the MP for Dewathang Gomdar constituency, inquired about when the moratorium on BDBL loans would be completely lifted for the general public.

In response, Lyonpo said that the moratorium was initially put in place to initiate structural reforms and provide time for the settlement of non-performing loans.

The Royal Monetary Authority (RMA) had suspended loans for both existing applicants and potential borrowers. To address non-performing loans, the government reduced the loan to 3.7 percent and transferred them to the on-balance sheet, consolidating all assets.

The government’s efforts have resulted in the RMA lifting the loan suspension in all 35 branches of BDBL across the country.

The finance ministry is collaborating with the RMA to facilitate new loan applications. Those who previously applied but did not receive full loans will now have the opportunity to secure them.