Tuesday, August 13, 2019

The ballet of Loan.

During my college days, I was more of an idealistic, and I don't regret being one. While I wanted world peace upon one side, the other part of people dying out of starvation pained me. But that was in the past, and someday, I hope we will see world peace, beyond mere words of politicians and false promises.

Now that something is out of table, let's talk about the local issues which needs to be addressed. Now, I am not an economist, and I am not an expert. I am just a layman, who doesn't want problems and just likes to comment upon what has happened, is happening and might happen as well. So bear me with my mumble jumble, with my thoughts as rhetoric it might be. 


A few weeks ago, we lost one of our major projects and we were told so because we were informed that from here on Financial Institutions might not lend loans to the folks who have proposals for service sector : that's too complicated word : basically, no loan will be given for future hotel owners - was what was told to us. And few days ago, we would read in Kuensel, that the nation was informed that no housing loans were going to be sanctioned by banks like BDBL, BOB and Tashi Bank. 

Now, here's a dent that we will be facing from here on, who are into real estate and into construction industry, but it is mixture of good and bad news. Good news for the folks who have money and bad for most of the folks who are within Bhutan, because I am presuming that those of us who are within Bhutan are poorer compared to the ones who are not in Bhutan. 

Keeping the data and science aside, where are we heading? Well, to be more realistic, I guess, our economy's handle is more or less managed by the truckers who drive at night, yes, it is upon the hands of these nocturnal dedicated folks who prefer to drive during nights and deliver materials in the morning. Thimphu Phuentsholing highway should have been boon, had we had tunnels and not cliffs for Tom Cruise to shoot some Mission Impossible movies down the line in future.

However, now that there will no loans lent to the future aspiring house owners, a lot of truckers will be suffering from no work syndrome, and this will have its own course upon the prices for materials. Yes, the materials will be costing us lesser, but it again depends to the Steel Tycoons of Bhutan, because apparently those who were competing in the past have united now. Last year, Steel saw the highest of the rates and god knows how much of profit they made and why should we be bothered? As far as it is legal, why be jealous.

The materials which were being consumed at very fast rate will be a bit stagnant and yes, there will be variety of choices in the market for which-soever brand of cement one wants. Here's an advice from the magician who pulls out rabbits from his hat, the brand name doesn't make much difference, the grade of cement does. If you are an engineer and yet you shame some of the brands in our market, go ahead, burn your freaking degree certificate.

Now that there won't be much loans lent, a lot of aspiring architects and engineers who were given false dreams by lecturers - who didn't get jobs themselves will suffer. Oh yes, a lot of soldiers who are just mere soldiers without any practice of shooting and camping will be out there calling themselves soldiers. 

The suggestion never was to "not to stop" loan, however, from the beginning what we did wrong was simple: we didn't regulate the prices of materials in the market. On one hand, we wanted to be fair and square, too honest and too straight that we reformed the amount of truckloads a truck could carry, but we went into the dungeon at pitch dark while we tried to slay the dragon in it. Yes, we were not equipped well and we were not backed up with proper preparation. As we still struggle with simple math issues in construction sector per se we lack realistic coefficients to do our trade. 

Hence, in a room full of chaotic hymns and rhythms, while we stop the noise of giving out loans to a thirsty ass which has been feeding upon it, we are to be hit by an impact which will distort our market a bit.

However, if one is to see potential now, it is right now. It is hence, good news to those who are abroad and has money or has access to loans abroad, if you can invest now, now is the time. So, if you want to venture upon real estate, now is the time - it's just a matter of choice - how much could one feed and nurture a dying horse before it wins you races? 

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