Thimphu: Business activities of all types, big or small, are falling victim to loans. It is painful that many collaterals get seized unconditionally upon failing to repay the loan. It is a growing concern and anxiety that loan victims are increasing with bankruptcy, getting locked out of bank support or often behind bars, and dashing every hopes and optimism into rubbles.
The seizure of properties (lien) in Bhutan occurs before the loan term concludes, which is yet another concern that could have taken place towards the end of the loan term, instead of somewhere in between. However, the authorities need to rethink debating about it. After losing the properties, the victims have less chance of blooming if not supported to bounce back.
It is a very disheartening blow and painful bearing of the sacrifices that shut down the earnings further. Once the door closes, everything weakens worsening the condition, making it difficult to stand again with increased despairs and humiliation of bankruptcy, which may lead to an ultimate mental and psychological or even physical death.
We feel that businesses in Bhutan fall after availing loans because of vague management of the fund, a few because of ineffective planning, and some because of natural calamities, diseases etc. However, it is my personal view that most businesses fail because of high interest rates of 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 setback of a crisis threatening the business’s stability. Many victims were severely affected, making it difficult to update loan repayments, whereby the financial institutions trust them no more with bad bank records.
The impact is painful to all fallen individuals. They feel that their faith has been shattered and that the door for availing loans has shut. They sense the anxiety of isolation, killing any hopes of regaining their businesses. The concerned authorities may not realize such sufferings unless investigated thoroughly.
It is crucial to realize such problems and support the fallen businesses with reconstruction loans for a second time to bounce back, even if they have entered into NPL or loan terms expired. It would be a mistake for banks to consider them permanent defaulters once a poor record is marked, as they can still perform better.
Fallen businesses will bloom with experiences of failure if supported and given a second chance. Money is the key challenge that everyone encounters. Failing at a startup does not mean failure, but a lesson and a foundation stone for stepping further ahead.
Failure is not permanent, but the stepping stones to success. A business has to encounter failures to succeed, but most of us feel the other way, negative. It is a negative approach to isolate and underrate the fallen business at startup. The victims must be encouraged to bounce back with inspiration to succeed in the bloom.
Jack Ma, the CEO and founder of Alibaba, began his journey with many failures. He encountered lots of obstacles by failing many times in his business, but without giving up, he embraced failures as a stepping stone to success. He inspired setbacks as lessons for success, remained committed to the complexity of many challenges, and demonstrated an ability to learn from mistakes. Likewise, he applied various strategies to resolve the challenges and became a billionaire, rising to the top of the world.
Quoting Jack Ma, our fallen people will not fail again but shine that need unswerving support to bounce back. If victims fail again for the second time, there are odds of carelessness and having no sense of hard work and determination. The victims with default dues and expired loan terms need consideration by restructuring and rescheduling the loan terms capitalizing overdue. This is one option which will be the biggest support for the defaulters to stand again, although no loan deferments were provided to them.
When things go wrong in the back, it becomes difficult for the fallen ones to seek favour. Therefore, I on behalf of all the loan victims, urge the government and the concerned authorities to humbly favour with sympathetic actions by being pitiful of the fallen victims forgiving with 2nd support to bounce back. If they do not perform well for the 2nd time, then measures be taken to resolve this. The victims, if supported for the 2nd time, will stand with experiences.
As a Buddhist peace-loving nation, it is significant for Bhutan to support them in standing up again by providing loans to relieve and recover the losses. We are hopeful, the Economic Stimulus Program will subsidize all the fallen businesses. It is the only opportunity and option to bounce back to foster the fallen business. The concerned authorities may give a second thought to a solution.
