The Economic and Finance Committee held consultative meeting with the Financial Institutions of Bhutan
On October 22, 2024, the Economic and Finance Committee (EFC), in presence of the Hon'ble Speaker and some members of the parliament held a consultative meeting with CEOs and officials from various financial institutions to discuss the implementation status of the Economic Stimulus Plan (ESP), the Standard Operating Procedures and guidelines, and the associated challenges.
The financial institutions reiterated on the funding windows: the Concessional Credit Line (CCL), which offers new business loans at a subsidized interest rate of 4%, and the Reinvigoration Fund (RGF), which provides support for distressed borrowers through interest subsidy of 4% and additional loans. The identified areas of support in respective windows were also apprised to the committee.
The committee were also apprised of the key challenges faced in documentation and in other operational aspects. It was deliberated at length in simplifying the process to gain access to loan with smooth disbursement, but without compromising on the essential appraisal procedures for the mutual benefit of the applicants and the banks. The EFC further emphasized on the importance of collaboration between the members of parliament and the financial institutions to guide the government in facilitating the successful rollout of the ESP for the collective benefit of the public, businesses, and the broader economy.
