𝐎𝐏𝐈𝐍𝐈𝐎𝐍- 𝐓𝐡𝐞 𝐅𝐚𝐥𝐥𝐞𝐧 𝐁𝐮𝐬𝐢𝐧𝐞𝐬𝐬𝐞𝐬 𝐢𝐧 𝐂𝐫𝐢𝐬𝐢𝐬, 𝐓𝐡𝐫𝐞𝐚𝐭𝐞𝐧𝐢𝐧𝐠 𝐒𝐭𝐚𝐛𝐢𝐥𝐢𝐭𝐲

Many businesses, whether large or small, are struggling under the weight of loans. It is distressing to witness numerous collaterals being seized unconditionally when loans are not repaid. There is growing concern and anxiety as the number of loan victims increases, leading to bankruptcies, exclusion from bank support, and devastating consequences.

In Bhutan, property seizures often occur before the loan term concludes, which is a significant concern. Such seizures should occur towards the end of the loan term instead of partway through. Authorities need to reconsider and debate this issue. After losing their properties, victims have less chance of recovery if they are not supported in rebuilding their businesses.

It is disheartening to bear the sacrifices and see earnings shut down further. Once the door closes, everything weakens, worsening the condition and making it difficult to recover, increasing despair and the humiliation of bankruptcy, which may even lead to an ultimate physical death.

We believe that businesses in Bhutan fail after taking loans due to vague fund management, ineffective planning, natural calamities, diseases, and other factors. However, it is my personal view that most businesses fail because of high-interest rates on loans with shorter terms, which is dangerous for low earners.

The pandemic caused the collapse of business activities for numerous entrepreneurs, business owners, builders, manufacturers, sellers, and traders, leading to negative earnings. It was a crisis that threatened business stability. Many victims were severely affected, making it difficult to update loan repayments, causing financial institutions to lose trust in them due to bad bank records.

The impact is painful for all affected individuals. They feel their faith has shattered and the door to obtaining loans has closed. They experience the anxiety of isolation, which demotivates their hopes of rebuilding their businesses. The concerned authorities may not realize such suffering unless thoroughly investigated.

Government policies are designed to protect banks, which are believed to safeguard the country’s economy. However, as the economy struggles to recover and businesses hit their lowest point after the COVID-19 pandemic, banks continue to enjoy dividends at the expense of their business clients. This clearly shows how businesses communities are being neglected, as the declaration of dividends by financial institutions should reflect a thriving economy, yet the reality suggests otherwise.

It is crucial to recognize these problems and support struggling businesses with reconstruction loans to help them recover, even if they have entered into NPL or their loan terms have expired. It would be a mistake for banks to consider them permanent defaulters based on a poor record, as they can still perform better.

Fallen businesses can flourish with the experiences of failure if given a second chance. Money is the key challenge everyone encounters. Failing at a startup does not mean permanent failure but rather a lesson for future success.
Failure is not permanent but a stepping stone to success. A business must encounter failures to succeed, but most of us view it negatively. It is counterproductive to isolate and underrate struggling businesses at the startup stage. The victims must be encouraged to rebuild with inspiration to succeed and thrive.

Jack Ma, the CEO and founder of Alibaba, began his journey with many failures. He encountered numerous obstacles and failures in his business but embraced them as stepping stones to success without giving up. He saw setbacks as lessons for success, remained committed to overcoming challenges, and demonstrated an ability to learn from mistakes. He applied various strategies to resolve challenges and became a billionaire, rising to the top of the world.

Quoting Jack Ma, our struggling individuals will not fail again but succeed if given unwavering support to reestablish themselves. If victims fail a second time, it may be due to carelessness and a lack of hard work and determination. Victims with default dues and expired loan terms need consideration through restructuring and rescheduling loan terms to capitalize on overdue amounts. This option would provide significant support for defaulters to recover, even though no loan deferments were provided to them.

When things go wrong, it becomes difficult for the struggling to seek favor. Therefore, on behalf of all loan victims, I urge the government and concerned authorities to favor them with sympathetic actions and support for a second chance. If they do not perform well the second time, then measures can be taken to resolve this. If supported for the second time, victims will gain valuable experience.

As a Buddhist, peace-loving nation, it is significant for Bhutan to support them in recovering by providing loans to relieve and recuperate from losses. We are hopeful that the Economic Stimulus Program will subsidize all struggling businesses. It is the only opportunity and option to foster struggling businesses. The concerned authorities should reconsider and find a solution.

Wangay,
Samdrupcholing,
Samdrup Jongkhar.