Bhutan still industries begin to close down (Economy)

Published on Nov 03 2008 // Main News

Thimphu, November 04: The Association of Bhutanese Industries said heightening global credit crunch and economic slowdown caused some exporting steel industries in Bhutan to temporarily close down. It said other industries are also set to face similar fate soon.

The association said the market crunch has suffered them a loss of about Nu 30 million. 

To avoid further damage in the industries, it has approached the government to take rescue measures and help survive the national industries.

They have asked the government to allow them to borrow more from the banks to create liquidity, whose loan debt had reached over Nu 1 billion. Their other demand include the postponement of loan repayment date by about a year and scrap electricity bills for six months. According to law, they are not allowed to burrow more than 30 percent of their company’s total liquidity.

The other two submissions include the exemption of excise duty at source on raw material and duty for import of ferrous scrap. Bhutan News Services