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Asia and Pacific > India

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Cover IMF Staff Country Reports
Bhutan: Selected Issues and Statistical Appendix
International Monetary Fund
This Selected Issues paper and Statistical Appendix on Bhutan underlie the macroeconomic impact of Tala, rapid private sector credit growth, and macroeconomic risks. In Bhutan, as the bulk of Tala-related flows go through the government accounts, this requires an appropriate fiscal stance and skillful expenditure management. Strong economic growth will require and lead to a deepening and further development of the financial system in Bhutan. The financial sector seems to be relatively shielded from adverse events, although risks remain.
Keywords:
ISCR; CR; Bhutan; credit growth; internal rate of return; cost; tala; banking sector CAR; hydropower generation capacity; NPV terms; vis-à-vis India; annual debt service; growth in Bhutan; power project; Credit; Commercial banks; Loans; Monetary expansion; Financial sector