ADB to extend $15-mn fund to Bhutan

Thimphu: The Asian Development Bank has extended a grant of $15 million to create an enabling environment for the vibrant development of micro, small and medium size enterprises in the country.

Of the grant assistance, $6 million is to support the government in undertaking necessary policy reforms to create an enabling environment and the balance will be used to provide credit, support capacity building to implement the programme and a cost sharing facility to provide technical knowledge and support to MSMEs that have potential for growth but face specified constraints. $5 million has been given to the Bhutan Development Finance Corporation to extend credit facilities to aspiring business entrepreneurs.

The projects aims to set up about 1,400 MSMEs, in line with the country’s tenth five-year plan objective of creating job opportunities for the unemployed.

The proposed MSMEs are expected to reduce poverty in the country, which is also one of the millennium development goals.

The MSME division of the industries department, ministry of economic affairs, will implement the envisaged activities under the program for promoting MSME in Bhutan. The director of industry said that the program includes regulatory amendments to encourage the growth of MSMEs.

Mr Kunio Senga, the Director General, south Asian department, ADB, and Dasho Yangki T Wangchuk, the finance secretary, and the managing director of BDFC finalised the grant assistance on February 19 in Thimphu.

“Bhutan is our number one performer in terms of development projects,” said Mr Kunio Senga. “This is because of the efficient use of the resources and the dedication and commitment of the King and the government to development activities.”