Though severely indebted, Bhutan is at a moderate risk of distress
13 December, 2009 – Bhutan is paying Nu 3.8 billion annually to service an outstanding debt of Nu 35b as of October this year, which is five billion less than the cost of the 1020 MW Tala project.
The debt, as a percentage of GDP, is 53 percent with hydropower debt at Nu 21.5b and non-hydropower debt at Nu 13.5b.
The debt figures do not take into account the Rs 5b borrowed this year from India to meet domestic rupee requirements, said Tshewang Norbu of the finance ministry. who made a presentation of the debt situation at a national workshop on strengthening responses to the global financial crisis. Continue reading Is Bhutan’s debt sustainable?