Govt opens door for external borrowings

Published on Jan 31 2010 // Main News

January 31, 2010: The cabinet has granted permission to private entrepreneurs and organizations for borrowing from each other and from foreign sources.

The private sector had urged the government to open that door saying that the local banks were not able to meet financial requirement for mega projects which require exorbitant funds.

The Royal Monetary Authority (RMA) has been directed to frame guidelines and the modalities of the resolution.

The government has already agreed to involve private sector for construction of mega power projects forming joint venture with foreign companies.

Opening doors for external borrowing with push Bhutan to liberalize its monetary policies to removes all restrictions on capital movement and participate in volatile capital market.