ROYAL MONETARY AUTHORITY OF BHUTAN

ANNUAL REPORT 2000/2001
DECEMBER 2001

Contents
Page
PREFACE...............................................................................................................................................1
BOARD OF DIRECTORS ....................................................................................................................2
MANAGEMENT.....................................................................................................................................3
STATISTICAL ABBREVIATIONS AND SYMBOLS........................................................................4
KEY ECONOMIC INDICATORS (+)...................................................................................................5
THE ROYAL MONETARY AUTHORITY OF BHUTAN ..................................................................6
1.1. DEVELOPMENT ..........................................................................................................................6
1.2. FUNCTIONS ................................................................................................................................8
1.3. ORGANIZATION STRUCTURE .....................................................................................................8
1.4. FUTURE PLANS ..........................................................................................................................9
CHART 1: CORE ORGANIZATION CHART OF THE RMA .......................................................................11
2.

DOMESTIC ECONOMY .........................................................................................................12
BOX 1: MEDIUM-TERM MACROECONOMIC PROSPECTS ......................................................................13
2.1. AGRICULTURE, ANIMAL HUSBANDRY, AND FORESTRY ..........................................................14
TABLE 1: REAL GDP GROWTH BY SECTOR 1996 - 2000.....................................................................14
2.2. MANUFACTURING, MINING, AND ELECTRICITY ......................................................................14
2.3. CONSTRUCTION .......................................................................................................................15
2.4. TOURISM .................................................................................................................................15
TABLE 2: SELECTED TOURISM INDICATORS 1996 - 2000 ....................................................................15

3.

MONEY, CREDIT, AND PRICES..........................................................................................16
3.1. MONETARY AND CREDIT DEVELOPMENTS ..............................................................................16
TABLE 3: MONEY SUPPLY, M2 – ITS COUNTERPARTS AND COMPONENTS ..........................................17
3.2. MONETARY POLICY FRAMEWORK ...........................................................................................17
3.2.1. Cash Reserve Ratio (CRR) ........................................................................................20
3.2.2. RMA Discount Bills ......................................................................................................20
3.2.3. Reserve Repurchase...................................................................................................20
GRAPH 1: COMPOSITION OF COMMERCIAL BANKS’ RESERVES WITH THE RMA .................................20
3.3. REVIEW OF DEVELOPMENTS IN COMMERCIAL BANKING .........................................................21
3.4. REVIEW OF DEVELOPMENTS OF NON-BANK FINANCIAL INSTITUTIONS...................................21
3.5. CAPITAL MARKET – THE ROYAL SECURITIES EXCHANGE OF BHUTAN (RSEB)......................22
3.6. PRICES .....................................................................................................................................23
GRAPH 2: CONSUMER PRICE INDEX ....................................................................................................23

4.

FOREIGN TRADE AND BALANCE OF PAYMENTS .......................................................24
GRAPH 3: FOREIGN TRADE..................................................................................................................24
4.1. BALANCE OF PAYMENTS WITH INDIA ......................................................................................26
4.2. BALANCE OF PAYMENTS WITH COUNTRIES OTHER THAN INDIA ..............................................26

i

RMA. Annual Report 2000/2001

4.3. FOREIGN DEBT AND DEBT SERVICE ........................................................................................27
TABLE 4: DEBT INDICATORS ...............................................................................................................27
4.4. EXCHANGE RATE DEVELOPMENTS ..........................................................................................28
GRAPH 4: EXCHANGE RATE DEVELOPMENTS .....................................................................................28
5.

GOVERNMENT FINANCE.....................................................................................................30
5.1.
5.2.

REVENUE AND GRANTS ...........................................................................................................30
EXPENDITURE..........................................................................................................................30

6.

WORLD ECONOMY ...............................................................................................................30

7.

MANAGEMENT AND ADMINISTRATION..........................................................................32

8.
ANNUAL AUDITED ACCOUNTS OF THE ROYAL MONETARY AUTHORITY OF
BHUTAN FOR 2000/2001..................................................................................................................35
TABLE 1. GROSS DOMESTIC PRODUCT AT FACTOR COST BY KIND OF ACTIVITY .............................36
TABLE 2. GROSS DOMESTIC PRODUCT AT FACTOR COST BY KIND OF ACTIVITY AT 1980 PRICES........37
TABLE 3. SALES OF MAJOR INDUSTRIES .........................................................................................38
TABLE 4. SALES OF CHUKHA HYDROPOWER CORPORATION ..........................................................40
TABLE 5. TOURIST ARRIVALS AND REVENUES ...............................................................................41
TABLE 6. SUMMARY OF BUDGETARY OPERATIONS ........................................................................42
TABLE 7. SUMMARY OF THE PRICE INDEX ......................................................................................43
TABLE 8. ROYAL MONETARY AUTHORITY OF BHUTAN-MONEY AND BANKING STATISTICS ..........44
TABLE 9. AUCTIONS/TAP SALES OF RMA BILLS ............................................................................46
TABLE 10.
BANK OF BHUTAN-MONEY AND BANKING STATISTICS ...............................................47
TABLE 11.
BHUTAN NATIONAL BANK - MONEY AND BANKING STATISTICS ................................49
TABLE 12.
DEPOSIT MONEY BANKS – MONEY AND BANKING STATISTICS...................................51
TABLE 13.
MONETARY SURVEY ...................................................................................................53
TABLE 14.
ROYAL INSURANCE CORPORATION OF BHUTAN - FINANCIAL STATISTICS ..................55
TABLE 15.
BHUTAN DEVELOPMENT FINANCE CORPORATION – FINANCIAL STATISTICS ..............57
TABLE 16.
FINANCIAL SECTOR INVESTMENT BY ECONOMIC ACTIVITY ........................................59
TABLE 17.
GROSS INTERNATIONAL RESERVES .............................................................................60
TABLE 18.
BALANCE OF PAYMENTS ESTIMATES...........................................................................61
TABLE 19.
BALANCE OF PAYMENTS ESTIMATES WITH INDIA .......................................................62
TABLE 20.
BALANCE OF PAYMENTS ESTIMATES WITH COUNTRIES OTHER THAN INDIA ...............63
TABLE 21A.
COMPOSITION OF TRADE WITH INDIA (IMPORTS).....................................................64
TABLE 21B.
COMPOSITION OF TRADE WITH INDIA (EXPORTS) ....................................................64
TABLE 22A.
COMPOSITION OF TRADE WITH COUNTRIES OTHER THAN INDIA (IMPORTS)............65
TABLE 22B.
COMPOSITION OF TRADE WITH COUNTRIES OTHER THAN INDIA (EXPORTS) ...........65
TABLE 23.
DIRECTION OF TRADE..................................................................................................66
TABLE 24.
CONVERTIBLE CURRENCY LOAN DISBURSEMENTS .....................................................67
TABLE 25.
FOREIGN DEBT INDICATORS FOR CONVERTIBLE CURRENCY LOANS ...........................68
TABLE 26.
INDIAN RUPEE DEBT INDICATORS ...............................................................................69
TABLE 27.
THE ROYAL SECURITIES EXCHANGE OF BHUTAN, INFORMATION ON LISTED
COMPANIES 70
FINANCIAL INSTITUTIONS ..........................................................................................................72
POWER SECTOR..............................................................................................................................82
I. BALANCE SHEETS .......................................................................................................................86
II.
INCOME AND EXPENDITURE STATEMENT ................................................................................89

ii

RMA. Annual Report 2000/2001

We thank all those who have contributed to the information contained in this Report. however. The Report covers the domestic economy up to June 2001 and touches upon possible future developments. The views expressed in this Report. 1 RMA. In the Annexes detailed information is provided on Bhutan’s four Financial Institutions and the Power Sector. as at November 2001. The Annual Accounts of the RMA are presented in accordance with the requirements stipulated in the RMA Act of 1982. and other private sector sources. Furthermore. an overview of events in the global economy and possible future development is presented. The section on the world economy is based on information obtained from the ECONOMIST (September 29th 2001).PREFACE This Report is published by the Research and Statistics Division (RSD) of the Royal Monetary Authority of Bhutan (RMA). financial institutions. The commentaries are based on information provided by government authorities. including a summary of Medium-Term Macroeconomic Prospects on the basis of the 9th Five-Year Plan outlay. Annual Report 2000/2001 . Comprehensive background data on Bhutan’s economy are made available in the Statistical Section. are those of the RMA and do not necessarily represent those of the sources of data.

Lyonpo Dr.BOARD OF DIRECTORS H. Kinzang Dorji Minister for Agriculture - Director Dasho Ugyen Tshering Foreign Secretary - Director Dasho Wangdi Norbu Finance Secretary - Director Mr. Lyonpo Khandu Wangchuk Minister for Trade.E. Lyonpo Yeshey Zimba Minister of Finance - Chairman H. Industries & Power - Director H.E.E. Sonam Wangchuk Managing Director Royal Monetary Authority Secretary 2 - - Director Member RMA. Daw Tenzin Secretary Planning Commission Mr. Annual Report 2000/2001 .

N. Division Head.MANAGEMENT 1. Internal Audit Unit Chettri Pushpa Lal 11. Research and Statistics Division Penjore 9. Banking Division Pradhan J. Division Head. Division Head. Division Head. Issue Division Tshering Namgay 8. Head. Annual Report 2000/2001 . Electronic Data Processing Unit Sonam Dem 3 Karma RMA. Head. 5. Foreign Exchange Division Tshering Pema Namgay 7. Reserve Management Unit Tshering Chador 10. Administration and Personnel Division Tangbi Phub Dorji 4. Financial Institutions Supervision Division Tshering 6. Deputy Managing Director Dechen Tshering 3. Chief Programmer. Currency Officer. Managing Director Wangchuk Sonam 2. Division Head.

July-June Discrepancies in the totals are due to rounding 4 RMA.STATISTICAL ABBREVIATIONS AND SYMBOLS e estimated p provisional r revised estimates - the figure is zero or less than half the final digit shown or the item does not exist or the figure is not available . causing a break in continuity + fiscal year. Annual Report 2000/2001 . the figure is unknown or is not meaningful or is not to be published --- change within a time series.

0 7.6 1973.5 2.7 Quasi-Money 1952.3 -764.1 16.3 5981.0 5.1 Demand Deposits 860.7 4949.1 2396.1 -3956.2 2500.0 4950.g.3 6919.4 478.1 294.2 -300.4 3691.5 682.6 -378.9 -3.8 28.1 5.2 292.2 21.6 -2469.5 48.4 20.6 53.3 2363.4 1364.5 1360. 5 RMA.4 1483.5 9.5 -5668.2 2366.5 3262.9 13248.9 7859.3 -1354.1 -190.3 10.2 16.9 Domestic Credit 794.9 1327.7 3350.6 24.0 19. M2 3268.b) On a calendar year basis.5 238.6 -245. c) Debt Service Payments in percent of exports of goods and services.4 1882.4 5.2 5.8 38.1 2082.3 852.1 2017.3 1816.1 8624.1 2867.0 9-10 12-16 8.5 -5817.2 288.1 8.4 Money Supply. .5 19.3 852.5 4277.8 259.9 4490.6 2474.0 Reserve Money of which 2567.7 -461.7 13.6 4252.9 752.4 42.1 16.5 216.7 21.) Total Revenue & Grants Of which: Foreign Grants Total expenditure and net lending Current Balance Overall Balance Money and Credit (percent change.9 Claims on Private Sector 532.1 5.0 -951. the entry under 2000/01 is for 2000.6 3318.4 145.5 3274.0 12.0 505.0 1050.1 30.3 6.8 2889.0 3045.0 2016.7 159.5 2232.3 3310.0 1245.6 4656.0 13-16 8.3 9.9 Counterparts Foreign Assets (Net) 5017.1 1832.8 1589.0 7.8 -3087.1 -4373.0 617.7 6063.4 41.9 4710.6 11354.8 855.0 -1296.1 7359.8 176.1 Banks' Deposits 1419.9 -1143.3 10.6 43..2 8930.5 9419.7 -738.4 1483.0 13-16 8.7 13971.3 12788.5 -2453.4 7.5 4464.9 Currency Issued 455.1 3686.0 11335.2 8.2 -205.1 37.8 -981.5 41.6 1331.9 1097.8 Money Supply.9 3.5 12.) 9610.1 7320.7 4477.KEY ECONOMIC INDICATORS (+) 1995/96 1996/97 1997/98 1998/99 1999/00 2000/01 7.2 -1787.3 a) June.6 794.1 3.6 4491.8 1119.9 17.9 4942.4 5.9 -453.9 6.4 -1272.0 41.4 158.6 19.8 -2011.2 6550.1 2122.4 43.0 3538.9 357. Annual Report 2000/2001 .6 -304.4 19.2 143.2 -3063.7 9704.0 13-16 8.0 13-16 4.5 13.0 1050.1 883.1 7.9 6233.8 1119.3 -4170.1 81.8 5030.0 10.1 15927.3 35.3 -289.7 4.8 8.5 9-10 12-16 6.7 5072.0 7547. M1 1315.2 9088.8 5238.0 36.5 10.9 700.1 3.7 -4778.1 1306.4 31.6 46.4 4.8 1742.5 18201.0 617.8 1124.1 4957.6 30.2 -50.1 4.6 6.2 2868.6 7224.5 10.5 8408.3 4806.6 Components Currency Outside Banks 455.4 9.5 GDP growth and prices (percent change) Real GDP at factor cost (b) Consumer prices (a) Government Budget (in millions of Nu.5 3562.3 1535.1 26.5 Ngultrum per USD (period average) 34.2 83.8 20685.6 380.5 11. end of period) Broad Money Credit to private sector Interest rates (end of period) One year deposits Lending rate 91-day RMA bills Balance of Payments (in millions of Nu.1 1242.2 21. e.8 2304.) Trade balance With India Current account balance (In percent of GDP) With India (In percent of GDP) Foreign aid Of which: India Errors and Omissions Overall balance (In percent of GDP) External Indicators (end of period) Gross official reserves in millions of USD (In months of imports) External debt (percent of GDP) Debt-service ratio (c) Memorandum items: Nominal GDP (in millions of Nu.

Important steps in that regard are summarised below. Development The Royal Monetary Authority of Bhutan Act was passed by the National Assembly of Bhutan during its fifty-sixth session in August 1982. Annual Report 2000/2001 . supervise. and foreign exchange operations. whenever necessary. and inspect their operations. It was. The RMA organised the establishment of the Royal Securities Exchange of Bhutan (RSEB) in 1993 to begin a small capital market for the purpose of facilitating public participation in the holding of securities of public and private companies.THE ROYAL MONETARY AUTHORITY OF BHUTAN 1. In 1993. the Cash Reserve Ratio was implemented for the purpose of liquidity control and for prudential purposes. the RMA has been in the process of building the institutional and operational framework for the purpose of assuming an increasingly active Central Banking role. the RMA introduced the Reserve Repurchase in September 1996 as its second debt instrument. In November 1992. Over the years. that the RMA started its actual operations. the RMA took over the additional function of Banker to the Government. the management of external reserves. the RMA was also actively involved in strengthening the Country’s Financial Sector. In March 1988. the Financial Institutions Act was passed by the National Assembly to provide the RMA with the legal framework to issue licences for financial institutions and to regulate. In 1984. commensurate with its mandate. Furthermore. Due to the non-availability of appropriate manpower it took about a year for the RMA to finally emerge as an organisation. RMA. As the organisational capabilities were being built up during this period. some of these responsibilities were gradually shifted to the RMA in a phased manner. During the initial stage of the RMA‘s development. the RMA took over the issue of the national currency. therefore. For the purpose of improving the RMA’s liquidity management. - - - - 6 In 1983. by holding the bulk of Government deposits and to provide means for financing the Government.1. only with effect from November 1983. various Central Banking functions continued to remain with the Ministry of Finance. RMA Discount Bills were introduced as an instrument of Central Bank Policy.

Furthermore. which has become out of date. One of the causes for sluggish credit activity in the country has been the inadequate legal framework for loan recovery and the high collateral requirements. the Negotiable Instruments Act was passed in the 78th session of the National Assembly in July 2000. there is an urgent need to revise the RMA Act of 1982. allowing each institution to determine the rates on the basis of the prevailing market conditions. removing various restrictions on foreign exchange transactions. Nevertheless. The facilities are also envisaged to enhance the payments and settlement system through the use of negotiable instruments. In line with the Government’s programme of liberalising trade and industrial policies. with efforts being made towards the drafting of such legislation. Until 1997. Furthermore. an Insurance and a Securities Law are very urgent. As part of the Financial Sector Reform Programme. thereby providing insufficient flexibility to financial institutions for setting their rates on the basis of the actual cost of funds. The aim is to eventually move towards current account convertibility. Annual Report 2000/2001 . called Bhutan National Bank (BNB) in January 1997. in order to provide an efficient system through which the country’s commercial banks could settle their claims on each other for checks and other negotiable demand items. In that regard. the RMA liberalised interest rates with effect from October 1997. in order to provide legal support for the Check Clearing Houses and the use of negotiable instruments in the payments and settlement system. For the purpose of dealing effectively with that problem. Since this arrangement was not conducive to the long-term growth of the Financial Sector and the economy. the Government passed in 1999 the Moveable and Immovable Property Act and the Bankruptcy Act. the RMA Board approved the new Foreign Exchange Regulations 1997. the Government Employees Provident Fund (GEPF) was transferred in 2000 from the Royal Insurance Corporation of Bhutan to the newly created National Pension and Provident Fund Bureau (NPPFB). Check clearing facilities were established in the country (the first in Thimphu in 1997 and the second in Phuentsholing in 1999). the Unit Trust of Bhutan (UTB) was converted into a full-fledged commercial bank. more important legislation needs to be drafted and be passed in the Financial Sector. interest rates on both deposits and advances were directly administered by the RMA.- - - - - 7 To enhance competition in the banking sector. while it is also necessary to draw up legislation for the NPPFB. RMA.

The Deputy Managing Director/Research and Planning reports directly to the Managing Director and is responsible for the Research and Statistics Division.3. and the Foreign Exchange Division. The basic responsibilities of the organisation units shown in the Organisation Chart. Functions According to the Act.e. He advises the Managing Director on all issues related to his particular area. recently approved by the Board of Directors. the day-to-day management of the RMA is the responsibility of its Managing Director. RMA. can be summarised as follows: a) b) 8 The Deputy Managing Director/Administration and Operations reports directly to the Managing Director and is responsible for the overall management of the Administration and Personnel Division. He advises the Managing Director on all issues related to his particular area. The Government’s Bank. For that purpose an Exchange Rate Target was chosen.. the Issue Division. Bank of Issue. Organization Structure While all the major Central Banking and Administrative decisions are taken by the Board of Directors (please see page 2).2. The Bankers’ Bank. the Board should meet “not less frequently than once every two months”. is in the process of being implemented. the Financial Institutions Supervision Division. The Advisor to the Government. i. apart from those of the Board of Directors and the Managing Director. According to the Act. The Organisation Structure of the RMA (shown below).1. the basic functions of the RMA are as follows: a) b) c) d) e) f) g) h) Achievement and maintenance of Price Stability. 1. and the Banking Division. in view of the close economic relationships between India and Bhutan. The Guardian of the Country’s External Reserves. Annual Report 2000/2001 . the oneto-one peg between the Ngultrum and the Indian Rupee. Promotion of Financial Development. Supervision of Banks and other Financial Institutions.

is responsible for the efficient use of resources and the compliance with policies. releases foreign exchange. The Internal Audit Unit. 1. issues and monitors Regulations. The Financial Institutions Supervision Division supervises on a regular basis all financial institutions by means of on-site and off-site inspection with regard to internationally accepted Financial Sector practices. the foreign exchange accounts. and regulations. it is worth mentioning that the RMA was established as a “Transitional Central Banking Institution”. licenses new institutions. soiled notes are sorted into re-issuable and non-reissuable notes. and profitability. in that order. advice to Management and Government.c) d) e) f) g) h) i) j) The Administration and Personnel Division is generally responsible for administrative matters and human resources development. the administrative accounts. the central accounts. Future Plans Concerning the future role of the RMA. laws. during which the RMA’s Central Banking capacity was gradually built up and the capability of the Financial Sector was strengthened. and the supply of coins. procedures. The Research and Statistics Division is responsible for Research and Statistics. manages Bhutan’s Convertible Currency and Rupee Reserves (the management of the latter is in the process of being taken over from the two commercial banks) with regard to safety. The work of the Issue Division involves the printing of new notes. plans. and provides information of exchange rates. the financial institutions’ accounts. The Banking Division maintains the Government account. the RMA appears to be ready 9 RMA. liquidity. the supply of notes to banks (currency chest) and the public (RMA counters).4. while non-re-issuable notes are destroyed. which reports directly to the Managing Director. and monitors money laundering. The Foreign Exchange Division monitors the Foreign Exchange regulations. information on Government and the Public. The Reserve Management Unit. which over time was expected to develop into a “full-fledged Central Bank”. Furthermore. and computer and library services. Annual Report 2000/2001 . After 18 years of Central Banking development. and is responsible for the transactions pertaining to the Clearing House. which is directly responsible to the Managing Director.

RMA. Acquisition of more computers.. enhancement of the status of the RMA. Development of an overall Information Technology Plan. improvements appear to be necessary in the following areas: increased RMA independence. Establishment of a computerised time series database for economic time series. and improvement of the professional expertise of the staff of financial institutions). Annual Report 2000/2001 . and specification of the general Monetary Policy Framework. increased competition.now for take-off as a “full-fledged Central Bank”. Further development of the RMA’s Monetary Policy Framework and the strengthening of the Monetary Policy Tools (at present only applicable to the maintenance of the one-to-one peg between the Indian Rupee and the Ngultrum). better timing and increased frequency of Board Meetings. together with a Data-flow System. the following basic steps appear to be necessary in the near future: a) b) c) d) e) f) g) h) 10 Revision of the RMA Act. improvement of payment systems. Improvement of the RMA´s Corporate Image. provision of more computer training. Further strengthening of the RMA’s staff capability through training and staff recruitment. Streamlining of the RMA’s organisation structure and management procedures. but is now outdated due to new developments and findings in Central Banking all over the world and Financial Sector developments in Bhutan. clear specification of the Primary Objective. For example. In support of the RMA becoming a full-fledged and most effective Central Bank.g. which was quite appropriate at its inception. Further enhancement of Financial Sector Development (e. and establishment of a well-designed Local Area Network (LAN).

Chart 1: Core Organization Chart of the RMA Board of Directors Managing Director Internal Audit Unit Reserve Management Unit Deputy MD Administration & Operations Administration & Personnel Division 11 Issue Division Deputy MD Research & Planning Banking Division Research & Statistics Division Financial Institutions Supervision Division RMA. Annual Report 2000/2001 Foreign Exchange Division .

1296. marginally faster than the 5. Since the actual national accounts data for 2000/2001 are not yet available. and Basochu.2. compared to a growth of 5 percent in the previous period. as compared to 21 percent in the previous period. Annual Report 2000/2001 . is mainly due to the ongoing construction of large hydropower projects. and Communications Sector. Storage. far exceeding the 7 percent increase in the total revenue and grants receipts. However. as measured by the Consumer Price Index (CPI). Kurichu. On the fiscal side.3 percent. decreased to 3. The Rate of Inflation. such as Tala. contributed to a positive Overall Balance of Payments.9 percent of the previous year.6 percent (year-to-year rate of change) as of June 2001. During the review period. in turn. and Broad Money (M2) by 5. as compared to the 4. the total expenditure increased by 12. The reduction in M2 growth was mainly due to the negative growth (of 5 percent) in Quasi Money. The growth in other major sectors.5 percent during the current period.continues to exert a major influence on the GDP growth. almost double that of the previous period. economic prospects for that year are indicated on the basis of most recent provisional GDP data published by the Central Statistical Organization (CSO). respectively. DOMESTIC ECONOMY This Section provides an overview of economic developments in Bhutan during 2000/2001.7 percent.4 percent for December 2000. with estimated growth of about 6 percent.5 percent. the decline in this sector is expected to be compensated by the performance in the Transport. thereby. The capital inflows through grants and loans during the year had more than offset the Trade and Current Account Deficits. as per the available budget estimates.6 million. and. Manufacturing and Electricity. This resulted in a budget deficit of Nu. is estimated to weaken to 6 percent in 2000 from 7 percent of the previous year. Bhutan’s overall exports and imports increased by approximately 4 and 23. with Narrow Money (M1) growing by 21. This. the growth of money supply slowed. partly reflecting the devastating effects of the flood that occurred in August 2000. as compared to 28. with an estimated growth of about 20 percent – although lower than the 25 percent of the previous period . which works out to around 6 percent of the GDP. real GDP is estimated to have grown by 6.7 percent in 1999/2000. which includes Mining and Quarrying.1 percent. The Construction Sector. 12 RMA. In 2000. taken together. During 2000/2001.

the projected capital inflow in the 9FYP would not only be sufficient to cover the Current Account Deficit. macroeconomic prospects in the Plan period are favorable. Nevertheless. Unlike the high monetary growth experienced in the past.Box 1: Medium-Term Macroeconomic Prospects The Ninth Five-Year Plan (9FYP) begins from July 2002 and in the light of preliminary estimates. the Current Account Deficit in the Balance of Payments is expected to widen further during the period. the Money Supply is projected to stabilize at around 11-13 per annum. Basochu. well in line with the expected growth of nominal GDP. As an import-dependent economy. but it is also forecasted to allow the Foreign Exchange Reserves to grow at about 10 percent per annum. limiting the influence of the External Sector on the monetary expansion. Annual Report 2000/2001 . relieving the Financial Sector of the current problem of excess liquidity. 13 RMA. the domestic investment environment is expected to improve in the near future. Further economic growth is envisaged to come through broadening and strengthening the Private Sector activities in the economy. mainly fuelled by Net Foreign Assets. The expected capital investments and the completion of three power projects during the Plan period (Kurichu.5 percent to about 8 percent. the expansion of domestic activities entails the use of Foreign Currency Reserves. With the fiscal deficit projected at about 2-3 percent of GDP and the policy emphasis on Private Sector development. As more economic activities are envisaged in the Ninth Plan. and Tala) are estimated to raise economic growth from the present rate of 6. M2 growth and major contributing factors (End of June) Percentage change on the previous year 80 70 60 8th Five-Year Plan Developements Percent 50 40 9th Five-Year Plan Forecast 30 20 10 (10) (20) 1997 1998 1999 NFA 2000 2001 DC 2002 2003 OIN 2004 2005 2006 2007 M2 growth The External Sector will continue to be dominated by close trade and exchange links with India. which was experienced in the 8FYP.

and Electricity Sector will decrease by about 1 percent .5 2.1 6.1.0 7.4 4. This again. rice. Mining. although earnings from Chukha declined from Nu.from 7 percent in 1999 to 6 percent in 2000. 14 RMA. potatoes. respectively. The Electricity Sector continues to maintain its contribution to the GDP. and major cash crops.0 12. ginger. Mining. consisting of the agriculture proper. Agriculture. such as apples. Manufacturing. Table 1: Real GDP Growth by Sector 1996 . The output growth of both the livestock production and forestry and logging sector are also expected to decline from 5.1 3. and Electricity The estimates indicate that the growth of the Manufacturing. 2011 million in 2000/2001. oranges.3 5.2546 million in 1999/2000 to Nu.2. The agriculture proper.1 3.4 8. A detailed description of Bhutan’s Power Sector is presented in Annex II. and cardamom. and forestry and logging.5 5.4 5. of about 12 percent. The contribution of this sector to the overall GDP remains more or less the same at about 24 percent.5 percent from 3 percent of the previous year.7 to 3. wheat. will weaken to 2.3 5.6 2. reaching 32.4 10. and its growth rate.5 percent and from 2 to 1. Annual Report 2000/2001 .7 6. which grew by 2.6 percent in the preceding year.9 percent.2000 Year-to-year change in % Item GDP at Factor Cost Agriculture Industry Services 1996 1997 1998 1999 2000(p ) 6.3 percent in 2000 from 33. compared to 2.8 13. of about 8 percent. Estimates also indicate that output growth of the Agricultural Sector. may be a reflection of the effects of the flood that occurred in August 2000.4 1. a reduction of about 21 percent.5 percent of the previous period. Animal Husbandry. consists of principal crops like maize. livestock production.2.3 percent. while it continues to provide occupation for almost 80 percent of the population.3 7.9 6.3 3. and Forestry The estimates indicate that the contribution of the Agricultural Sector to GDP will continue to decline gradually.

7 10.7 8.5 1998 6165 4860 1305 13. Dungsum Cement.5 million from the previous year’s receipts of USD 9. As mentioned earlier. –1) Millions of USD. Table 2: Selected Tourism Indicators 1996 .5 10. Annual Report 2000/2001 . while total revenue rose to USD 10. second quarter earnings in 2001 have increased due to the especially large 15 RMA.2. Tourist arrivals have risen from 287 visitors in 1979 to 7553 in 2000.3 9.7 1997 5415 4617 798 5. there were 74 tour operators in the country providing direct employment for about 500 people in the country. government departments. accounting for 12 percent of nominal GDP in 2000. The sector’s share in nominal GDP is expected to maintain the upward trend.8 19. and to a lesser extent to construction work carried out by individuals.5 Revenue Receipts1) % Change in receipts 6. and autonomous entities.9 1999 7162 6328 834 16. As of June 2001. All hotels are privately-run enterprises.6 6. Basochu. Kurichu.6 7. the performance of this sector can be attributed mainly to the construction works related to large projects like Tala.2000 Item Tourist Arrivals Of which: Cultural Trekking % Change in arrivals 1996 5133 3287 1846 7. Construction The Construction Sector is estimated to grow at a slower pace of 20 percent.2 2000 7553 6633 920 5.1 Source: Tourism Authority of Bhutan. compared to 11 percent of 1999. There are presently 75 tourist-category hotels and lodges functioning with a capacity of 1256 rooms and a workforce of 841 national employees. compared to the 25 percent growth of the previous year.9 14.3 million. Tourist arrivals grew in 2000/2001 from the previous year by 5 percent. 2. Tourism It has been 27 years since tourism activities were first initiated in Bhutan and 10 years since the Tourism Sector was privatised.3.4.6 1. As compared to the previous year.

Domestic Credit not only maintained the positive growth of the previous period. Time Deposits decreased by 5. Ltd.1 of June 2000. Singapore. Singapore.. AND PRICES 3. Plans for Foreign Direct Investment in the Tourism Sector with three proposed joint partnerships between Bhutan International Company and M/s HPL Leisure Holdings Pvt. MONEY. 3.5 percent. as compared to a growth of 16.9 million).4710. the reduction in the Commercial Banks’ Deposits with the RMA led to a decrease in Reserve Money by 5. This spells an optimistic future for tourism. both Demand Deposits and Time Deposits contributed in moderating the growth of M2. and the construction of new high luxury resorts to accommodate them. CREDIT.3 percent.2017.9 from Nu. BTCL and Maha/Aman Resorts. Employment in this industry can be expected to rise. and Chhundu Travels and Tours and the Oberoi Group. Monetary and Credit Developments In the Monetary Sector. Among the components of Money Supply (M2).1. Annual Report 2000/2001 .influx of tourists in the month of April 2001. during the fiscal year 2000/2001. However.752. compared to 21 percent of 1999/2000. The main reason for a slower growth in Money Supply during the period under review was the decrease in Net Foreign Assets. During the same period. as against a growth of 28. During the same period. The growth of Demand Deposits about halved from 35 percent in 1999/2000 to 16 percent in the current period. since over 90 percent of the employees shall be national recruits. Broad Money Supply (M2) grew at a much lower rate of 5.1 percent (to Nu. are underway this year. but almost tripled to Nu. as the collaboration between the three foreign hotels and Bhutanese Tour Agencies shall be guaranteeing a fixed number of highquality tourists each year. Japanese tourists came in second at about 11 percent. the Narrow Money Supply (M1) showed a growth of 21.7 percent in 1999/2000. In the current period.7 percent in the previous period. This development was primarily due to a significant change in the Government’s net position with the banking 16 RMA. India.7 percent. which declined by about 4 percent. numbers are anticipated to fall considerably during the third and fourth quarters on account of the tragic September 11th incidents in the United States. American tourists accounted for approximately 40 percent of total arrivals in 2000.

M2 4277.8 2474. The growth of Credit to the Private Sector by 48.3 852.4 *) M2 = 1 plus 2 minus 3.5 380.7 4980.5 3045.1 1242.9 4258.1 3562.1 1113.5 Memorandum Item: Reserve Money of which: Currency Issued Banks’ Deposits 2016.9 1832.1 559.1 1306.6 2017.7 6063. Quasi-Money4) 1973.4 1483..0 1050. Currency Outside Banks 5.0 11335.7 1360. combined with a large growth in the Credit to Private Sector.9 679.1 1419.1 7359. as compared to a growth of 4.5 4464. Demand Deposits3) 6.3 752.4 3686.1 -1110.2 9088.1 percent in the previous fiscal year.1 1167.6 715..7 4942.0 2122..5 1327.7 930.0 1567. Claims on Joint Corporations. Annual Report 2000/2001 . Domestic Credit Claims on Govt.7 4477. In many Central Bank 17 RMA.sector.9 3350. Monetary Policy Framework The RMA’s Monetary Policy Framework is implicit.5 3691.9 1245.. M1 Counterparts*) 1.8 MONEY SUPPLY. one of the purposes of the RMA is “to promote monetary stability”. M2 – Its Counterparts and Components Millions of Ngultrum Item End of period 1996/97 1997/98 1998/99 1999/00 2000/01 MONEY SUPPLY.0 502. was mainly due to construction activities stemming from large power projects and partly in response to the reduction in interest rates on some consumer-oriented financing schemes introduced by the financial institutions.7 1097.7 4331.0 5381.0 -277. Section 6 b). According to the Act.3 457.8 1119. (Net) Claims on Private Sector Others1) 3.2) Including Money Market Instruments (RMA Bills).2 2868.2.8 5238.6 4490.1 2082.+) M2 = 4 plus 5 plus 6 and M1 = 4 plus 5.4) Time Deposits and Foreign Currency Deposits..9 -455.8 13248.9 6233.5 9419.9 2304.9 4710.6 617. since it is not clearly spelled out in the Act.6 3318.9 1535.8 3250. which can be interpreted as the promotion of “Price Stability”.2 8930. 3.3 percent. and Claims on Non-monetary Financial Institutions.6 -648.8 651.9 2889.3) Including Savings Deposits.1 1331.1) Claims on Government Corporations.0 4950. Other Items (Net)2) Components+) 4. Table 3: Money Supply. Foreign Assets (Net) 2.3 12788.9 -1485.2 2500.

The system can be described as an informal Monetary (Currency) Union with India. however.. with the Ngultrum and the Rupee circulating freely side by side in Bhutan. In other words.and long-term) of Bhutanese M2 and Indian Money.g. since there is no uncertainty about exchange rate developments between the two trading partners. similar to that of Luxembourg. Annual Report 2000/2001 . There are various supporting factors for the existing system. credible RMA and Government policies).g. including the following basic measures: a) always making available sufficient Rupees on demand for the purpose of avoiding a parallel market for the Rupee. however. which can be considered a Regional/Supranational Solution. the salient features of which are as follows: a) b) c) d) e) There are very close economic and financial relationships between India and Bhutan. and d) confidence-building measures for the Ngultrum (e. it has to be stressed that the policy decisions made in Bhutan in that regard were very prudent. where the Monetary Policy has been carried out on its behalf by Belgium (prior to the inception of the European Central Bank). an independent Monetary Policy in Bhutan is. Price Stability is quantified.Acts. more or less. e.. c) avoidance of large discrepancies in the growth (medium. There is a Dual Currency System. keeping in mind. precluded. b) provision of at least 100 percent Reserve backing for all Ngultrum issued (elements of a Currency Board). Looking at the existing Monetary Policy Arrangements. As a consequence. Inflation and Interest Rates in the two countries are closely related. 18 RMA. Monetary Policy is confined to the support of the Peg. in the case of the European Central Bank. implies the acceptance of India’s Monetary Policy. The Peg has also clear benefits for trade with India. Targeting the Exchange Rate. The arrangement maintains confidence and ties Bhutan to the relatively stable monetary conditions in India. Price Stability is equivalent to a year-to-year rate of change of the Consumer Price Index of less than 2 percent. The Intermediate Target for achieving and maintaining Price Stability in Bhutan is the one-to-one Peg between the Indian Rupee and the Ngultrum. that in reality the measurement of the former is virtually impossible.

. discount of bills and secured loans) at its disposal.e.g..g. According to the Act. i. the RMA has also various Liquidity Support Facilities (e.At present. the establishment of a frame of reference for interest rates. RMA Discount Bills. the creation of a primary and secondary market for securities. the Cash Reserve Ratio (CRR). which basically are used for prudential purposes and financial development (e. 19 RMA. however.. the RMA has at its disposal several tools of Monetary Policy. are not being used at present due to the large surplus liquidity of the commercial banks. Annual Report 2000/2001 . which. and the Reserve Repurchase. and the establishment of a money market).

It was revised to 15 percent for all deposit liabilities.500 million at a coupon rate of 5 percent per annum. Reserve Repurchase This instrument was introduced in September 1996 for an amount of Nu. Graph 1: Composition of Commercial Banks’ Reserves with the RMA At the End of June 2001 RMA Bills 10% Reserve Repurchase 12% Cash 2% Other Deposits 52% CRR 24% 20 RMA.3. In January 2000. the instrument accounted for Nu. at a weighted discount rate of 5. Bhutan National Bank. was introduced in 1984. on which the RMA pays interest of 2 percent per annum. the CRR was further adjusted to 10 percent for all deposits. cash in vaults being counted towards the CRR. 3. Annual Report 2000/2001 . The maturity period was shortened from six months to three months from the ninth issue onwards.2. set at the rate of 3 percent for all deposits with the Bank of Bhutan. At the end of June 2001. there were Nu. cash in vaults being counted towards the CRR.2. in 1994.3. With the conversion of the Unit Trust of Bhutan to Bhutan’s second commercial bank. 972.2. RMA Discount Bills The RMA Discount Bills were introduced in December 1993. payable quarterly.410 million worth of bills (maturity of 91 days) outstanding. 3. Cash Reserve Ratio (CRR) The CRR.3 percent.2. the CRR was adjusted in July 1997 to 15 percent for demand deposits only. cash in vaults not being counted towards the CRR. At the end of June 2001. after the introduction of RMA Discount Bills and Government Bonds.2 million of banks’ sterilised liquidity.1. The Reserve Repurchase has been rolled-over consecutively for the ninth time.

8 percent. showed a decrease of 38. Credit to the Private Sector performed extremely well. Over 30 percent of their resources came from capital grants. 3.312 million to Nu. as compared to a growth of 27. Annual Report 2000/2001 . Personal and Consumer Loans too grew. too. The growth in total assets was largely on account of an increase in foreign asset holdings of the banks. The commercial banks’ sector-wise distribution of credit indicates an overall growth in credit. The decrease in the Asset portfolio is due to the transfer of Government Employee Provident Fund to the National Pension Bureau.1093. while 57 percent were from soft term foreign borrowings. achieving a growth of 48 percent. A detailed description of the development of the two commercial banks is presented in Annex I. influenced by a slower growth in Time Deposits.12 billion. namely the Royal Insurance Corporation of Bhutan (RICB) and the Bhutan Development Finance Corporation (BDFC).2088 21 RMA. Review of Developments of Non-Bank Financial Institutions During the fiscal year 2000/2001.2 million in 1999/2000 to Nu.5 percent. Non-Bank Financial Institutions. had a sector-wide growth in credit during the review year. Loans and advances to the Private Sector increased significantly (by 30 percent) during the year. with the largest increase going to Trade and Commerce (from Nu.1356 million in 2000/2001). as compared to 19 percent in 1999/2000. as compared to 19 percent in 1999/2000. its claims on the Private Sector through its industrial and agricultural credit programs increased by 26.7 percent. with the highest increase going to the Personal and Other Loans (from Nu. which grew at 6.4.3. total assets and liabilities of the commercial banks (Bank of Bhutan and Bhutan National Bank) grew at a slower pace of 18. albeit at a much lower rate.3.405 million). which was set up as a separate autonomous agency in March 2000. such as Agriculture.2 percent last year. On the liability side. followed by Building and Construction (from Nu.275 million in 1999/2000 to Nu. Review of Developments in Commercial Banking During the fiscal year 2000/2001. Transport. In the case of the BDFC. the combined assets of the two nonbank financial institutions. Credit to other major sectors.2 percent to Nu. Manufacturing and. following a sluggish growth of 4 percent in 1999/2000. growth in total deposits was much lower at 9 percent.

only about 25 percent of the securities outstanding are deposited with it. and the CEO of the RSEB as the Member Secretary. The Board of Directors consists of the Managing Director of the RMA as the Chairman. 393 million. 3. followed by Trade and Commerce (from Nu. lured by high dividends declared by most of the public limited companies.2 million was provided by the four financial institutions. Since the volume of trading is relatively low. Its initial Authorised Capital of Nu. there has been a significant flow of savings to the equity market. brokerage firms.6 million). The RSEB is incorporated under the Companies Act and is licensed under the Financial Institutions Act. a rate lower than the one experienced by the commercial banks. are licensed to serve as brokers. Annual Report 2000/2001 . the RMA. non-bank financial institutions’ Credit to the Private Sector grew by 31 percent to Nu. During the review period. To eliminate delays in the registration of physical transfers of shares and to ensure the safety of such documents. which acts as a Securities Commission. and. due to the lack of a proper legal framework governing the CD. As the Exchange is still at an early stage of development. the President of the Bhutan Chamber of Commerce and Industry (BCCI). There are approximately 5000 shareholders in Bhutan and every effort is being made by the Government to ensure that shares are being distributed as widely as possible to the general public. Capital Market – The Royal Securities Exchange of Bhutan (RSEB) The Exchange began with four listed companies and a total market capitalisation of Nu. a Central Depository (CD) was established along with the RSEB. fourteen companies are listed on the Exchange.5. Recently. At present. the Exchange conducts trading only twice a week on Tuesdays and Fridays.2360 million. However. the CEO’s of the four brokerage firms.1 million to Nu 287. since then.3 million. investment in securities has increased dramatically. In that 22 RMA. A detailed description of the development of the two non-bank financial institutions is presented in Annex I.1494. provides budget grants for its operations.million in 2000/2001). with a market capitalisation of about Nu. The trading system is fully automated and linked by a Local Area Network to the trading floor.152. whose subsidiary units.

the existing Securities Exchange Regulations (1993) need to be upgraded to a modern legislation. which grew at 4 percent (year-to-year rate of change). the Financial Institutions Supervision Division in the RMA is required to commence the supervision of the RSEB and the Capital Market. published by the Central Statistical Organisation (CSO) on a half-yearly basis. There have been decreases in both food and non-food prices.6. Prices According to the Consumer Price Index (CPI). Annual Report 2000/2001 . Percentage Change on the Previous Year 10 9 Percent 8 7 6 5 4 3 2 1 0 1996 23 1997 1998 1999 2000 2001 RMA. 3.regard. which increased by about 23 percent over the previous year. as compared to 4. The increase in the prices in Thimphu during the year was due to a rise in prices of vegetables and fruits. as compared to 2. there is a decrease in the annual inflation rate to 3. The Thimphu Food Price Index (quarterly publication of the CSO) for the quarter ended June 2001 indicates a moderately faster growth in Thimphu food prices.8 percent of the previous quarter. while a substantial institutional strengthening of the RSEB will be necessary.6 percent (year-to-year rate of change) as of June 2001. it has to be mentioned that the demand for equities is expected to grow further in the future.4 percent for December 2000. Within the ongoing Financial Sector Reform Process. Graph 2: Consumer Price Index June.

has risen from 17 percent to 23.4778. drawing to a close during the next two years. Annual Report 2000/2001 . an acceleration in overall Imports is also evident by their higher growth of 23. in millions 8000 6000 4000 2000 0 1995/96 1996/97 Exports 24 1997/98 1998/99 1999/2000 2000/2001 (p) Imports RMA. Kurichhu and the Upper Stage of Basochu. as a percentage of nominal GDP. This modest favourable turn has not been able to prevent the worsening of the Current Account Deficit to Nu. Meanwhile. FOREIGN TRADE AND BALANCE OF PAYMENTS Overall Export earnings registered a marginal increase to Nu.3 million during 2000/2001.5817.4.8 percent to Nu.4 million.1 percent in 2000/2001. The service and transfer receipts were larger during the year compared to the previous year.1 percent in 1999/2000 to 28. As such. The Trade Deficit.1 percent 2000/2001. the Trade Balance continues to be in Deficit.8 million from last year's Deficit of Nu. whereas the service and transfer payments during the year were lower than in the previous year. The high growth of exports in 1999/2000 was primarily on account of an upward revision in the tariff rates on electricity exports to India by Ngultrum 0. Graph 3: Foreign Trade 12000 10000 Nu.7 percent during 2000/2001. It did however.6 million. in comparison to the 25. project-related import levels shall be expected to fall in the near future.5668.8 percent rise in imports during the preceding year.5207. recording an increase of 54.50 per unit. It is likely that with the 2 hydropower projects. bring down its (Current Account Deficit) share in the GDP from 31.8 percent rise in 1999/2000. as compared to the 16. and there have been no additional revisions made since.

of which USD 19 million were transferred to the National Pension and Provident Fund Bureau. Rupee Reserves grew by 14. During the year.1 million.1124.3 million. 25 RMA. Annual Report 2000/2001 .3 percent to Nu. the Overall Balance of Payments stands positive at Nu.Nevertheless. in spite of Trade and Current Account Deficits.3 million. helped by the capital inflow of Foreign Aid and Grants in excess of the Current Account Deficit.3617. and Convertible Currency Reserves grew from USD 221.8 million in 1999/2000 to USD 236.

5 percent in 1999/2000.4373. Due to the inflow of project-related capital aid and grants from India in excess of deficits. similarly. Balance of Payments with Countries other than India Bhutan’s Trade Deficit with Countries Other than India widened from Nu. Balance of Payments with India The Current Account continues to be in Deficit although it did decrease from Nu.1294. led to the overall deterioration in the Trade Deficit. the ratio of Trade Deficit to nominal GDP rose to 11. which increased by approximately 4 percent. 4.3956.4 million in 2000/2001. two of the power projects. Kurichhu and Basochu.1 percent to 48. 26 RMA. were more than offset by large imports of Nu. due to considerable service and transfer receipts combined with lower transfer payments. Exports to India. Fiscal year 2000/2001 witnessed a further deterioration in the Current Account Balance.9 percent and. the share of the Current Account Deficit to GDP was 19.2 percent in 2000/2001 from 9.8 million in 1999/2000 to Nu. There has been a considerable growth in Credit to the Private Sector from 4. Despite the growth of nominal GDP outpacing the growth of the Trade Deficit.1 percent in 1999/2000 to 9 percent in 2000/2001.4 million for the period under review. The share of the Trade Deficit to GDP in FY 2000/2001 was 11. As noted earlier. It is highly possible that there is a correlation between the rise in Private Sector Credit and the surge in Other Imports. the result is a favourable positive Overall Balance. with the Deficit increasing from Nu.2.8 million in the previous year to Nu. Annual Report 2000/2001 . It should be noted that the rise in import levels was mainly attributed to the growth in Other Imports. This trend is likely to continue until most of the turnkey projects are commissioned. The Current Account Deficit with Countries other than India in relation to nominal GDP increased from 7.4.6 million to Nu. are expected to be completed within the next 2 years.1 million in 2000/2001 (a growth of approximately 33 percent).2309.1 percent this fiscal year. This was mostly due to a considerable increase in net service payments to Countries other than India and Total Imports.7388.1 million which.1732. have declined during the period under review. Tala imports on the other hand.1861. consequently.1.1 percent during the same period.

5 percent to USD 15.7 93.9 235. continues to be the largest provider of the loans.3 41.0 172.5 million. the stock of External Debt grew by 36.671.1 98. the inflow of foreign aid in excess of the deficits has led to a positive Overall Balance of Nu. as at the end of June 2000. as a percentage of GDP.0 2684.1 6.1 million.3 89.8 million.3 million.In spite of a worsening in the Trade and Current Account Deficits. with gross disbursements amounting to USD 54.7 million.7 3276.) Debt Outstanding/GDP (in percent)1) Debt Service Ratio (in percent)2) 1997/98 1998/99 1999/00 2000/01(p) 134.6 percent to USD 235. followed by the World Bank and the Kuwait Fund for Arab Economic Development.2 4. and USD 27.2 3.3. The Total Debt.1 106. with gross disbursements of USD 30. 4. The rise in the Total Debt Stock reflects the Government’s greater recourse to funding from external sources for development activities. increased from 41. 27 RMA. Table 4: Debt Indicators End of period Item Debt Outstanding (in millions ) Total (USD) Convertible Currency (USD) Indian Rupee (Rs.6 1715. respectively.1 percent in the current period.5 161.8 10.4 36.7 53. Foreign Debt and Debt Service During the fiscal year 2000/2001.5 1) GDP (1997/98=1997). The Asian Development Bank (ADB).7 percent in 1999/2000 to 53.6 million in 2000/2001. Convertible currency loan disbursements increased by 103. 2) Debt service payments in percent of exports of goods and services.9 43.9 6024. Annual Report 2000/2001 .

4 percent in June 2001 from 11. 4. respectively.2 percent between June 2000 and June 2001. were for interest payments.2 percent against the US Dollar between June 2000 and June 2001. Total Rupee debt increased by 83. as we have not yet started to service the new loans. the debt service ratio dropped to 1. or USD 21 million.6024. with disbursements of Nu.4 percent.8 percent to Nu.3 in June 1999.4 million during the fiscal year. while the 28 RMA. The growth in Rupee debt can be ascribed to hydropower project loans for Tala and Kurichhu.9 million as at the end of June 2000.4 million and Nu. Graph 4: Exchange Rate Developments Fiscal Year Average 50 45 Nu. Annual Report 2000/2001 . per US dollar 40 35 30 25 20 15 10 5 0 1995/96 1996/97 1997/98 1998/99 1999/00 2000/01 Among other major currencies.4. It is expected that the Rupee debt would continue to rise. which is pegged at par to the Indian Rupee. As a result of a significant increase in the total loan disbursements. The convertible currency debt service ratio declined to 9.9 percent from 2. Based on the monthly average. However. Exchange Rate Developments The Ngultrum. until the on-going hydropower projects are commissioned.768 million. continued to depreciate against the US Dollar. the Euro depreciated against the US Dollar by 11. the Ngultrum depreciated by 5.7 percent in the previous year.1027. during the year. its ratio to GDP climbed significantly to 29 percent from 18 percent in the previous year.Total debt service payments of convertible currency loans amounted to USD 73. of which 28.

29 RMA. in contrast to its appreciation in 1999/2000. Annual Report 2000/2001 .Japanese Yen experienced a notable depreciation of 15 percent against the US Dollar during the same period.

Expenditure On the expenditure side. 5.5 million.4397. the Government revenue increased by 11.6 million was more than matched by the revenue generated through tax and non-tax revenue.1 million from Nu. Non-tax revenue . During the same period.3310.5. reflecting another consecutive year of successful expenditure control.accounted for about 49 percent of the total domestic revenue. grew by 11.2 percent. the forecasts were finalised before September 11th and the Fund concedes that growth is now likely to be 30 RMA.6 percent this year and 3. 5. which was an increase of 2 percent on the previous year. the disbursement of aid and grants to major projects continued to be the dominant factor. On the Capital Account. mostly generated through enterprise profit taxes and taxes on goods and services. published in September 2001. 6. financing 34 percent of the total expenditure. works out to around 6 percent of GDP. GOVERNMENT FINANCE The revised government budget statement for 2000/2001 signaled a steady and sustained growth. However. The current expenditure of Nu. However.7 million. grants from India declined by 13.764. the tax revenue. WORLD ECONOMY The IMF. External borrowings financed around 38 percent of the resource gap.3 percent. Revenue and Grants During 2000/2001. reflecting an increase of Nu. current expenditure accounted for 45 percent of the total expenditure.2.7 percent to Nu. however.5 percent in 2002.8 percent.1. In the same period. in the World Economic Outlook.6 million in 1999/2000. Annual Report 2000/2001 . respectively) in 2000/2001. is forecasting the world GDP growth at 2. The overall budget deficit for 2000/2001.1663. While total grants remained more or less unchanged from the previous year at Nu.532.surplus transfers from public enterprises. this decrease was more than offset by an increase in grants from Countries other than India during the year. such as Chukha Hydropower.8 percent and 7. enabling the Royal Government to finance about 23 percent of the total expenditure. both current and capital expenditures increased (by 18.

A majority of economists now expect America’s GDP to contract in both third and fourth quarters of this year. The IMF. The Euro Area grew at an annual rate of only 0. The IMF argues that. it is premature to quantify the impact of the attack on the American and world economies. Morgan Stanley expects the Euro Area to contract in the fourth quarter and to grow only slightly in the first quarter of 2002. in its economic analysis in a special section in the Outlook. Consumer-confidence figures for the Netherlands. It would not take much to turn that into recession. explores how increased linkages between economies through trade.3 percent growth in America in 2001 implies that output will be broadly flat in the second half of the year. The IMF’s forecast of 1.4 percent in July.slower.1 percent in 2002. Add in the many emerging economies that are also stumbling and Morgan Stanley reckons that global growth will slow to 1. But there is one big difference: unlike today. the first European survey to be carried out since the American attacks. showed a plunge.8 percent this year and to 2. That is well below the IMF’s numbers-and it would count as a world recession. says the IMF. with industrial production falling by 1. in 1990/91 Japan. The bank forecasts average growth in the rich economies of only 1 percent in 2001 and 2002. given the huge uncertainties involved. In contrast. recent data suggest that the economy may have slipped into recession even before the terrorist attack. Indeed. as confidence weakens.2 percent in the second quarter and the third quarter looks sluggish. the Euro Area and most emerging economies were growing briskly. Morgan Stanley now expects Japan’s economy to contract for four consecutive quarters until next spring. but it remains cautiously optimistic. with GDP falling by an average of 0. which also helped to push a weakening American economy into recession.8 percent this year and next. The synchronised nature of this downturn. Another new channel through which economic shocks are transmitted between economies is business confidence. If so. An adverse shock in America now has a bigger impact on the rest of the world than it did previously. Economists like to draw analogies between now and the Gulf War. has increased the vulnerability of the global economy to shocks. foreign direct investment and financial markets have made this business cycle more synchronised than previous ones. The IMF finds that measures of business confidence in America and Europe have become 31 RMA. the Euro Zone will only narrowly escape recession. Annual Report 2000/2001 .

In view of achieving better transparency. Annual Report 2000/2001 . John Making. has also been developed and 32 RMA. which were approved by the Board for implementation. Besides. The RMA actively participated in major policy matters of the Royal Government. European businessmen seem to pay more attention to American business confidence. Equity. During the year. Both the On-Site Examination and Off-Site Examination Manuals for the Examiners have been developed. the Financial Institutions Supervision Division of the RMA has been strengthened in order to carry out the regular supervision of the Financial Institutions. and Liquidity (CAMEL) ratings. The RMA has also been playing a vital role in co-ordinating activities of the various External Agencies. The terrorist attacks increase the risks of an already sick world economy. the Managing Director represented the RMA in various International Forums. Assets. such as the Annual Meetings of the IMFWorld Bank. This partly explains why earlier this year the European Central Bank underestimated the impact of America’s slowdown on the economies of the Euro Area. yet they may help to avoid a world depression. 7. thereby increasing the total strength of Board Members to seven. argues that the crisis could encourage overly cautious policymakers to cast aside their fears about inflation and to pursue more aggressive monetary and fiscal easing. and by much more than can be explained by correlated movements in economic activity. Management. It has been the Co-ordinator for the Technical Assistance received from the ADB in various Projects for Financial Sector Reforms in Bhutan. MANAGEMENT AND ADMINISTRATION During the fiscal year 2000/2001. which is an automated Off-site Surveillance System based on Capital. the RMA’s Service Regulations were also revised by the Management. The Financial Institutions Ratio Management Analysis (FIRMA). With the help of Technical Assistance from the ADB. and accountability. the RMA’s Board was reconstituted by appointing two new members. Technical Assistance from the ADB for strengthening the Financial Institutions Supervision function of the RMA and for the Financial Sector Intermediation Programme have been successfully completed.more synchronised in recent years. an economist at the American Enterprise Institute. Traditional economic models fail to take full account of these growing linkages.

Annual Report 2000/2001 .5 million. With the recruitment of 3 graduates during the year. the Central Bank of Sri Lanka. the total staff strength of the RMA was 79. Germany. while during the same period. and competence. We have also received a System Engineer from the Japanese Overseas Volunteer Cooperation (JOCV) to study the existing situation and to bring about improvements in the area of Information Technology. the RMA. Klaus Dornseif has been with the RMA as a Short-term and Resident Advisor to review and strengthen the RMA’s Central Banking Capacity. the RMA received Technical Assistance from the Bundesbank. during the year. In order to give the necessary exposure to develop skills and professional capabilities. as compared to Nu. 235. in addition to external training with institutions like the Reserve Bank of India. of whom 32 are women. to introduce International Money Order Services. The Issue/Currency Division during 2000/2001 issued new currency notes amounting to Nu. 23 33 RMA. which will soon be under implementation. it destroyed soiled or mutilated currency notes amounting to Nu. the Officers and Staff of the Authority have been trained both outside and within the country.implemented during the year. and the Federal Reserve Bank.715. USA. STI Singapore. To provide better facilities and also to reduce the cost through competition by making available better and more efficient financial services. During the year. To increase efficiency. authorized Bhutan Post. The RMA organized several rounds of Meetings and Workshops for the Financial Institutions to get the necessary feedback for developing a comprehensive set of revised Prudential Guidelines to be issued by the RMA to the Financial Institutions. in addition to the existing two commercial banks. professionalism. under which Mr. During the year. The Management has been giving high priority to Human Resources Development. The Issue Division has also developed a comprehensive Manual. With the objective of streamlining the procedures for the conduct of the money changing business.6 million in the previous year.36. Bank Negara Malaysia. the Examining Officers were provided on-the-job training within the country by the ADB Consultants. the rules and procedures governing the exchange transactions by the Authorized Moneychangers were amended during the year. SEACEN Centre.2 million.

officers and staff were sent abroad to attend Short Courses and Seminars. Annual Report 2000/2001 . conducted by International Organizations and Central Banks. 34 RMA.

are appended (Annexes III and IV) in this Issue of the Annual Report. During the year. 85.8. Section 3 of the Royal Monetary Authority of Bhutan Act. the Audited Financial Statements for the year ended June 2001. Ngultrum in Circulation Outside Banks increased by 33 percent to Nu.3 percent) at the end of the previous fiscal year. audited by M. and the CRR.73 million in the previous year. 35 RMA. 366 million. the RMA’s operating surplus transferable to the Royal Government increased by Nu.9048 million from Nu. India. the Reserve Repurchase.S. Annual Report 2000/2001 . The total interest expenditure during the year on account of the use of Central Bank Policy Instruments.77 million. as compared to Nu.Gupta and Company. consisting of the Balance Sheets and the Profit and Loss Account.7 million to about Nu. such as RMA Bills. Foreign Assets of the RMA decreased to Nu.1483 million in 2000/2001. a chartered accountancy firm from Calcutta. 9163 million (-1. Annual Audited Accounts of the Royal Monetary Authority Bhutan for 2000/2001 of In accordance with Part 10. 1982. rose by around 5 percent to Nu. representing a growth of about 31 percent over the previous year.

7 32. Construction 6.5 1048. Annual Report 2000/2001 100.9 -458.0 2043.9 1929.2 1495.7 1306.9 139. Manufacturing 4.3 1736.2 730.5 18201.1 6.4 1101.9 6300.1 1088.5 102.8 1393.2 Livestock production 1.0 441.4 645.1 121.5 1729.7 468.2 7.5 8150.8 1374. Transport.9 12.3 -559.8 1547.5 1014.0 3095. Wholesale and retail trade.0 -148.2 -231.3 309.0 10.0 325.4 351. Gross Domestic Product at Factor Cost by kind of activity At Current Prices in Millions of Ngultrum Year Sector 1993 1994 1995 1996 1997 621.1 2138.7 1436.9 587.0 709.9 2253. and communications 8.2 172.6 1369.8 2.7 930.4 1814. storage.9 3427.0 47.1 9.6 11354.5 1.1 3897.5 909.1 1687.0 -68. and forestry 1.4 1013.8 20685.7 1318.5 1552.8 1237.4 1159.8 1095.6 1040.9 1653.0 .6 1889. Agriculture.3 16.7 1588. 36 RMA.1 15927.2 1436.5 9610.0 2336.3 1742.2 647. restaurants and hotels 7.2 751.5 2102.1 70.7 2128.9 1. livestock.social & personal services (Government administration and defence) 120.3 8.4 2801.0 308.2 787.6 545.1 Agriculture proper 1. Financing.Community.2 2566.6 703.0 -203.7 2813.2 193.5 6877.0 7007.2 1374.3 Forestry and logging 2.0 8.1 2485.6 12.8 35.3 1526.3 1769.0 3440. and business services Gross Domestic Product 1980 1998 1999 2000(p) Share of GDP in 2000 (%) Source : Central Statistical Organization of the Planning Commission. Mining and quarrying 3.2 574.9 616. real estate.Table 1.0 687.0 5786.5 551.0 1069.4 638.8 1058.7 269.6 855.5 1699.4 875.5 88.8 1022.3 560.4 262.7 13971.3 7.5 1466. insurance.0 -526.2 Less : Imputed bank service charges -20.3 752.2 1004. Electricity 5.7 910.9 6.0 -575.7 4538.0 5276.7 9.7 1362.8 172.4 1937.2 805.7 903.2 457.6 2687.1 1599.2 503.9 729.9 729.

real estate.3 1. Annual Report 2000/2001 .4 266.6 274.8 242.2 178.0 46.3 3.0 243.1 -95.7 55.1 3.716.553.8 343.2 1.5 362.4 6.5 293.1 250.5 1.196.5 619.4%.5 47.504.0 296.0 -20. storage.1 367.4 274. insurance.6 241.2 319.094. Gross Domestic Product at Factor Cost by kind of activity at 1980 prices At 1980 Prices in Millions of Ngultrum Year Sector 1.2 656. restaurants and hotels 7.9 226.9 585.4 3.7 287. livestock.8 221.7 443.2 2.2 Livestock production 1.2 1.081.2 11.8 170.0 1.4 58.0 340.9 232.5 360.4 1.2 342.3 3.918.2 172.937.2 1. 3.9 397.3 -61.2 238.5 380.0 203.0 258.1 -114.0 351.3 3.4 6.8 70.0 641.8 3.0 428.0 -115.8 2. 5.2 2.9 3.9 6.5 259. 4.7 -90.7 121.4 397.5 163.710.6 259.8 35.9 370.5 26.2 224.0 32.7 325. and communications 8.3 563.0 408.2 334. and forestry 1.4 4.0 330.7 256.3 Forestry and logging 2.6 243.5 313.2 1.040.5 88. 6.1 334.4 309.124. 37 RMA.7 325.1 218.0 178.2 263.5 231.2 218.4 263. Financing. Mining and quarrying Manufacturing Electricity Construction W holesale and retail trade.9 139.0 2.0 -111.233.2 295. Agriculture.095.6 3.5 34. and business services 9.7 227.1 Agriculture proper 1.320.2 4.7 233.1 1) Source : Central Statistical Organization of the Planning Commission.0 365.Table 2.8 367.0 8.0 360.8 -106.4 383.1 43.1 626.4 120.2 1.2 50.2 256.4 2.9 234.Community. 1) The average rate of growth of the Gross Domestic Product from 1993 to 2000 is 6.7 2.5 245.0 -45.0 429. Transport.287.9 278.social & personal services (Government administration and defence) Less : I mputed bank service charges Gross Domestic Product 1980 1993 1994 1995 1996 1997 1998 1999 2000(p) Growth from 1999 to 2000 (%) 621.9 349.2 2.2 314.0 342.0 19.3 353.1 243.318.7 354.1 599.2 1.249.1 245.8 374.8 269.2 578.

9 89.6 26.7 250.3 29.7 564.8 22.0 101.5 433.1 6.2 46.2 145.6 13.1 16.6 428.1 1.6 21.7 67.2 6.9 7.0 124.6 448.4 29.0 1.3 24.7 70.1 87.3 54.2 2.5 1.8 12.7 60.7 402.6 21.8 3.7 24.1 51.8 87.6 75.8 3.7 0.8 2.3 3.4 5.0 9.5 207. Exports to India Exports to Countries other than India Sales within Bhutan 561.9 8.7 236.3 9.5 14.9 104.8 58.7 (2) Bhutan Board Products Limited Exports to India Exports to Countries other than India Sales within Bhutan 348.2 5.7 454.5 52.2 25.9 3.1 14.9 142.0 26.2 6.2 77.1 - 474.1 (3) Bhutan Carbide & Chemicals Ltd.3 234.6 213.4 46.7 0.1 247.1 - 87.1 26.6 166.3 53.0 1.6 168. Sales of Major Industries Millions of Ngultrum 1996 1997 1998 1999 Industry 2001 I II III IV Total I II (1) Army Welfare Project Exports to India Exports to Countries other than India Sales within Bhutan 198.0 200.8 108.7 2.0 2.5 206.9 7.5 257.9 14.0 RMA.1 383.9 60.8 255.8 3.1 4.5 124.4 12.3 3.8 89.2 10.6 560.2 237.9 52.3 7.0 12.0 3.2 58.9 12.9 18.3 85.2 0.7 231.Table 3.1 24.7 130.9 14.7 25.1 25.7 1.1 117.4 7.0 49.9 36.6 18.8 46.5 8.4 17. Exports to India Exports to Countries other than India Sales within Bhutan 38 2000 4.2 7.0 114.4 0.0 21.3 1.3 42.9 (4) Bhutan Fruit Products Limited Exports to India Exports to Countries other than India Sales within Bhutan 133.6 9.5 51.0 460.5 23.3 232.0 330.0 26.4 112.9 8.2 542.4 66.3 3.3 546.9 181.0 58.8 149.1 569.7 15.4 0.8 228.6 - - - 15.4 20.2 103.9 64.2 90.4 44.5 7.1 583.0 55.8 363.6 1.6 6.6 0.2 696.8 200.3 95.6 1.4 21.6 73.6 29.2 119.5 78.7 127.2 7.4 127.4 85.3 555.5 140.6 583.0 8.8 8.4 125.8 12.7 3.5 172.1 1.3 83.6 147.0 2.3 110.6 170.9 107.6 0.0 56.8 (5) Bhutan Polythene Company Exports to India Exports to Countries other than India(*) Sales within Bhutan (6) Penden Cement Authority Ltd.4 1.3 10.6 53.7 6.3 2.5 9.6 148.2 128. Annual Report 2000/2001 .6 3.3 80.7 199.4 20.6 151.0 684.1 87.3 209.3 68.1 265.9 69.6 30.5 19.5 1.

6 13.9 1.1 247.8 697.5 10.9 26.2 810.0 12. . -(3) Calcium carbide.(-) Nil.3 278.5 130.7 1.7 0.6 18.9 18.8 62.2 2162.1 497.5 40.7 15.8 1964.4 18.5 433.1 - 522. 39 RMA.2 12.2 278.6 1.3 6.4 8.0 94.2 4.4 3.6 237.8 - Total 428.0 27.4 46.4 - 534.4 1.9 64.9 9.1 1578.9 77.6 4.6 1.1 1.9 2.4 14.3 1.9 3.7 14. CONTINUED Millions of Ngultrum 1996 1997 1998 1999 2000 2001 Industry (7) Bhutan Ferro Alloys Limited Exports to India Exports to Countries other than India Sales within Bhutan 497.9 27.2 7.6 5.8 32.6 357.9 41.0 67.0 15.4 15.8 4.9 469.7 19.1 41.6 38.5 TOTAL Exports to India Exports to Countries other than India Sales within Bhutan 2078.1 19.2 487.5 8.3 (10)Druk Satair Corporation Limited Exports to India Exports to Countries other than India Sales within Bhutan 45.9 226. -(4) Processed vegetables and fruits.6 78.2 2.3 22.8 6.4 126.4 1.7 8.4 21. -(1) Alcoholic beverages.1 49.5 1.4 488.3 25.9 - 488.9 522.8 28.1 (9) Eastern Bhutan Coal Company Exports to India Exports to Countries other than India Sales within Bhutan 47.4 3.0 23.7 8.5 97.6 18.-(7) Ferro Silicon.9 0.4 29.5 31.4 7. SALES OF MAJOR INDUSTRIES.0 0.6 514. -(2) Particle boards.-(8) Processed vegetables and fruits -(9) Coal .8 1771. Note: Some of the figures for 2000 have been revised.9 794.2 25.9 0.9 24.4 126.9 2.2 11.1 443.7 - I 148.0 79.1 22.2 148.1 - II 149.8 18.7 282.9 381.8 1.9 5.0 - 4.2 14.3 24.1 0.3 59.4 62.0 646.5 47.9 15.8 153.7 786.2 16.7 534.1 34.7 5.8 18.1 5. -(10) Gypsum dust & Gypsum boulders.6 0.9 2627.4 730.8 529.0 10.1 2.4 11.9 15.5 24.7 29.7 III - IV 153.6 Source : Respective Industry.6 1.9 4.5 1.7 8.2 15.7 7.8 49.4 5.9 2051.0 4.1 2253.7 8. Annual Report 2000/2001 .7 28.6 4.5 22.8 2.6 207.2 68.2 2454.8 27.5 10.4 1.1 3.4 428.5 0.0 149.9 0. -(5) High Density Polythene (HDPE) Pipe.8 17.TABLE 3.2 34.0 232.-(6)Cement.6 21.8 0.5 2549.1 2.4 3.1 117.4 - I 117.2 - II 126.4 26.7 45.6 38.0 2.4 - (8) Bhutan Agro Industries Limited Exports to India Exports to Countries other than India Sales within Bhutan 12.4 0. (*) Deemed export.

0 10.0 221.4 287.5 8.6 26.0 328.8 53.Table 4.8 354.8 339.7 26.1 164.7 33.1 116.4 233. Annual Report 2000/2001 .1 9.9 187.3 8.8 11.0 298.8 328.4 70.3 13.5 2307.0 38.2 172.1 154.8 334.8 75.2 1.8 15.6 116.7 8.0 15. Note: Some of the figures for 2000 have been revised.2 310.8 Apr 63.1 Mar 26.7 190.6 1338.7 1489.0 62.1 188.9 10.5 203.6 152.7 13.6 237.4 12.1 87.2 12.5 54.1 122.3 317.8 12.8 12.3 40.6 9.8 88.5 223.0 4.7 25.3 221.6 9.2 52.0 47.9 351.1 43.3 9.2 124.6 10.8 2141.0 9.8 9.5 15.1 77.8 Total Source : Chukha Hydro Power Corporation.1 35.4 10.7 24.3 10.3 75.3 9.9 91.4 209.1 320.9 Oct 164.5 24.4 162.1 177.9 9.8 215.3 104.0 118.7 Sept 203.9 14.2 Dec 58.1 9.0 21.8 10.4 June 173.9 9.1 48.8 10.0 114.6 11.5 11.5 174.7 31.5 135.3 9.3 327.3 34.6 261.0 193.6 117.7 9.1 93.8 1288.6 10.1 11.1 179.6 21.0 309.0 13.6 225.3 10.9 10.6 10.8 12.0 May 125.6 331.5 3.6 2019.2 3.8 12.7 29.1 124.3 13.9 Aug 231.0 47. Sales of Chukha Hydropower Corporation Millions of Ngultrum 1997 Month Total 1998 Export Internal Consumption Total 1999 Export Internal Consumption Total 2000 Export Internal Consumption Total 2001 Export Internal Consumption Total Export Internal Consumption Jan 25.2 Feb 19.8 150.0 11.7 265.8 1404.4 10.6 6.1 329.7 298.2 9.0 11.6 323.0 62.4 2189.5 40. 40 RMA.2 112.2 17.0 12.9 37.4 July 234.4 81.9 9.3 53.6 184.0 25.9 12.7 248.5 338.5 6.6 Nov 80.4 9.1 124.0 24.2 9.3 187.

9 1859 2.1 160 0.3 307 0.2 154 0.3 267 0.1 152 0.4 683 1.3 254 0.3 1632 2.9 Source : Tourism Authority of Bhutan.6 466 0.8 5133 6.2 689 0.8 1062 1.8 678 0.0 4765 5. 41 RMA.0 1168 1.8 995 1.2 Aug 301 0.2 145 0.1 119 0.7 640 0.2 211 0.4 346 0.8 1128 1.2 123 0.1 195 0.1 996 1.5 Dec 219 0.8 7162 8.1 112 0.1 213 0.6 276 0.2 Total 3968 4.3 Sept 465 0.1 97 0.3 332 0.7 1169 1.2 183 0.1 90 0.3 337 0.4 605 0.1 July 99 0.4 415 0.2 279 0.7 7553 9.6 2247 3.0 185 0.9 925 1. -(*) Convertible currency paying tourists.2 275 0.5 604 0.3 542 0.6 788 1.3 1084 1.1 1319 1.2 154 0.7 341 0.8 1488 2.4 1066 1. Annual Report 2000/2001 .1 120 0.2 Feb 175 0.1 81 0.2 224 0.3 393 0.1 314 0.3 231 0.0 276 0.1 96 0.2 146 0.9 710 0.1 162 0.0 Oct 787 1.4 June 115 0.2 355 0.8 Apr 274 0.1 91 0.1 148 0.4 Mar 641 0.5 5415 6.1 134 0.4 599 0.2 306 0.3 1022 1.1 187 0.8 508 0. Tourist Arrivals and Revenues Number of Tourists and Revenues in Millions of US Dollars Period 1994 1995 1996 1997 1998 2000 1999 2001 Number Revenue Number Revenue Number Revenue Number Revenue Number Revenue Number Revenue Number Revenue Number Revenue Jan 101 0.6 6165 7.7 1153 1.3 May 373 0.3 215 0.3 86 0.Table 5.1 299 0.1 58 0.5 1077 1.1 133 0.3 553 0.1 Nov 418 0.1 108 0.

Dept of National Budget and Accounts (Figures may not add due to rounding).8 1045.7 1968.8 3178.0 800.6 1045.9 Current 1550.1 2200.1 -211.1 Grants 1456.5 4949.4 143.7 158.9 947.4 8624.2 1334.8 Tax Non-tax Budget surplus or Deficit (-) Financing Transactions (2) - -248.5 3642.2 171.5 8408.0 2284.9 1204.1 1743.3 1773.3 3702.8 844.5 7859.3 3262.0 -7.4 2220.0 1168.1 1816.0 Internal borrowings (Net of principal repayments 22.2 4046.2 -100.3 4656.5 37.1 1663.4 -44. Summary of Budgetary Operations Millions of Ngultrum Period Item Revenue 1993/94 1994/95 1995/96 1996/97 1997/98 1998/99 1999/00 2000/01(r) 1666.2 2341.9 Others 98.2 2363.3 Expenditure (1) 3167.7 300.9 -764.6 External borrowings (Net of Principal repayments) 24.5 2.4 5097.7 -26.7 4957.1 4397.8 1977.9 176.6 -249.of overdraft.3 304.7 From India 607.0 -1.6 -477.8 124.6 1736.1 276.6 -300.6 606.0 7224. 42 RMA.2 2627.0 3656.1 195.1 252.9 1032.6 Capital (1) 1616.6 2232.6 496. A negative resource gap means net repayments of internal borrowings or an increase in Cash or Bank balance (4) Includes use + or repayment .3 649.5 196.7 1284.7 - 158.7 143.6 3650.2 336.1 1086.5 1296.3 -304.4 3133.3 1877.6 351.6 3274.0 -6.1 3310. Annual Report 2000/2001 .2 868.0 -1.5 -1296.6 45.5 2470.5 1927.1 1647.2 4806.1 1928.6 503.5 2616.9 238.7 4252. (1) Includes lending to public and joint sector corpns.1 1347.8 426.4 1265.6 -479.1 4921.5 728.9 5307.0 2355.6 Internal Resource gap (3) 21.5 771.8 Cash and bank balances (4) -1.3 Total Revenue and Grants 3122.7 2424.4 2127.9 1906.6 -248.9 764.0 - - Others Source.5 -3.0 2178.Table 6.8 -238.9 7. Negative financing transactions depicts net repayment of borrowings or increase in cash or bank balances (3) The Internal Resource Gap is that part of the budget deficit/surplus that has to be met from internal resources(Govt Cash and Bank balances or borrowings).2 1194.3 553.8 -143.net of principal repayment (2)Financing transactions by definition must equal the budget deficit or surplus on revenue/grant/expenditure which they finance.9 4585.1 9704.9 1246.6 1064.6 4491.3 6919.4 Others 848.

Table 7.

Summary of the Price Index

December 1979 = 100
Period
Weight
in % (1)
Item

1995
June

1996
December

June

1997
December

June

1998
December

June

1999
December

June

2000
December

June

2001
December

June

Average
Growth
Rate
in %

72.31
27.69
100.00

Index
367.7
532.2
413.2

Food
Non-food
Total

72.31
27.69
100.00

Percentage change on previous year
7.3
12.7
10.9
7.8
9.8
7.2
6.4
9.2
8.2
10.7
9.3
8.3

3.8
14.1
7.4

3.6
9.6
5.7

10.0
7.5
9.0

12.9
10.6
12.1

9.2
9.1
9.2

2.6
7.9
4.5

0.6
8.9
3.6

1.3
9.6
4.4

0.8
8.0
3.6

June December
80-01
79-00
8.1
8.1
10.5
10.9
8.9
9.0

Food
Non-food
Total

72.31
27.69
100.00

Percentage change on previous period
5.7
6.7
4.0
3.7
2.5
4.6
1.7
7.3
4.5
5.9
3.2
5.0

0.1
6.3
2.3

3.5
3.1
3.4

6.2
4.2
5.5

6.3
6.1
6.2

2.7
2.8
2.8

-0.2
4.9
1.7

0.8
3.8
1.9

0.5
5.6
2.5

0.3
2.3
1.1

79-01
7.7
10.5
8.6

Food
Non-food
Total

392.2
556.6
437.7

407.8
566.3
451.7

422.9
607.8
474.1

423.1
646.2
484.9

438.1
666.2
501.2

465.3
694.4
528.7

494.5
737.1
561.7

508.1
757.9
577.3

507.3
795.1
587.0

511.2
825.2
598.1

513.9
871.3
612.9

515.5
891.0
619.5

Source : Central Statistical Organization of the Planning Commission. -(*) Excluding rent. -(1) 1979 Expenditure Survey.

43

RMA. Annual Report 2000/2001

Table 8.
Statistics

Royal Monetary Authority of Bhutan-Money and Banking

Millions of Ngultrum
Assets

End of
Period
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sept
Oct
Nov
Dec
2001
Jan
Feb
Mar
Apr
May
Jun

44

Total

Foreign Assets
Claims
Converon
tible
Deposit
Foreign
Money
Total
Rupee Currency Banks

51.4
116.9
244.0
320.4
506.5
720.5
930.6
1418.9
2457.0
2241.9
3126.2
3595.1
4395.0
5602.5
6126.7
9218.6
10030.6

51.4
102.9
227.8
303.6
482.7
696.6
840.7
1144.8
2268.1
2027.2
2944.7
3533.2
4337.2
5284.8
6064.6
8022.4
8840.5

2.8
6.7
7.2
9.4
15.7
15.6
33.2
16.0
28.6
21.7
59.3
24.6
27.6
25.1
25.5
26.9
82.3

48.6
96.2
220.6
294.2
467.0
681.0
807.5
1128.8
2239.5
2005.5
2885.4
3508.6
4309.5
5259.7
6039.0
7995.5
8758.2

0.0
14.0
16.2
16.8
23.8
23.9
29.5
38.6
47.7
43.7
107.8
6.9
2.8
307.8
2.5
1193.0
1187.5

0.0
0.0
0.0
0.0
0.0
0.0
60.4
235.5
141.2
171.0
73.7
0.0
50.0
0.0
51.0
0.0
0.0

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
4.9
3.7
3.1
2.6

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
55.0
5.0
5.0
5.0
0.0
0.0

10182.5
8922.4
10407.1
8923.6
10349.9
8975.7
10221.3
8818.4
9970.8
8990.3
9577.3
9162.9
9989.7
9228.7
10172.8
9505.1
10471.0
9662.8
11049.6
9942.0
11791.4 10468.5
11253.8 10357.6

94.0
64.8
91.1
106.0
111.4
102.0
100.6
91.2
97.5
85.1
100.1
87.8

8828.4
8858.8
8884.5
8712.3
8878.8
9060.8
9128.0
9414.0
9565.3
9856.9
10368.4
10269.8

1257.5
1480.8
1371.6
1400.1
977.8
411.9
758.1
664.9
805.0
1104.3
1319.7
892.7

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

2.7
2.7
2.7
2.8
2.7
2.5
2.9
2.8
3.3
3.3
3.2
3.5

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

10556.8
9987.8
9608.6
9221.7
9080.2
9352.7

100.6
90.7
95.7
108.8
78.7
89.4

9443.5
9097.8
8826.1
8909.7
8919.3
8958.7

1009.1
795.8
683.3
199.5
78.7
22.7

0.0
0.0
0.0
0.0
0.0
280.0

3.6
3.5
3.5
3.7
3.6
2.0

0.0
0.0
0.0
0.0
0.0
0.0

9544.1
9188.5
8921.8
9018.5
8998.0
9048.0

Claims
on
Govt.

Claims
Claims
on Nonon
Monetary
Private Financial
Sector Institutions

RMA. Annual Report 2000/2001

TABLE 8. CONTINUED
Royal Monetary Authority of Bhutan

Millions of Ngultrum
Liabilities

End of
Period
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sept
Oct
Nov
Dec
2001
Jan
Feb
Mar
Apr
May
Jun

Reserve Money
Foreign Liabilities
Of which:
RMA
Currency
Bills
Outside
Govt. Outstand- Capital
Total
Banks
Total Rupee Others Deposits
ing
Account

Other
Items
( Net )

51.4
116.9
244.0
320.3
506.6
720.5
930.7
1419.0
2457.0
2241.9
3126.3
3595.1
4395.0
5602.6
6126.7
9218.6
10030.6

39.2
85.2
203.7
259.2
432.6
384.3
691.2
1259.6
1592.7
1256.5
1364.9
1286.8
2149.7
2328.5
2545.5
3954.1
4972.5

22.1
46.2
70.4
90.7
103.5
149.1
187.7
194.1
246.0
345.0
346.0
347.5
432.4
422.5
720.9
768.8
969.2

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
616.8
161.1
250.0
250.0
250.0
0.0

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
616.8
161.1
250.0
250.0
250.0
0.0

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

13.0
23.9
22.2
19.4
9.4
180.3
77.5
65.0
116.4
20.2
25.4
29.8
28.6
333.7
27.9
1207.3
1233.5

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
600.0
550.0
1000.0
681.1
560.0
486.5

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
40.2
88.1
78.9
48.1
150.1
172.5

-0.8
7.8
18.1
41.7
64.6
155.8
161.9
94.4
747.9
965.2
1736.0
1021.5
1417.6
1611.5
2574.2
3097.2
3165.6

10182.5
10407.0
10349.9
10221.3
9970.8
9577.3
9989.7
10172.8
10471.0
11049.6
11791.5
11253.9

5021.4
4982.7
5027.4
4871.5
4918.7
4950.9
5091.3
5271.5
5458.4
5760.4
6206.3
6021.6

975.7
977.5
1040.7
991.3
1022.7
1119.4
1086.9
1121.7
1205.2
1384.6
1208.7
1269.6

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

1301.9
1529.6
1420.8
1449.3
1029.9
462.2
777.5
558.1
670.5
1122.0
1342.1
918.2

486.5
510.0
510.0
510.0
510.0
510.0
480.0
480.0
410.0
410.0
410.0
410.0

195.3
217.8
241.2
253.1
326.3
361.6
376.9
396.6
400.1
128.7
204.7
220.6

3177.4
3166.9
3150.5
3137.3
3185.9
3292.6
3264.0
3466.5
3532.0
3628.5
3628.4
3683.5

10556.8
9987.8
9608.6
9221.7
9080.2
9352.7

5277.9
4872.5
4572.2
4598.8
4553.8
4710.9

1276.1
1318.5
1346.4
1346.8
1349.4
1483.1

0.0
0.0
0.0
0.0
0.0
0.0

0.0
0.0
0.0
0.0
0.0
0.0

0.0
0.0
0.0
0.0
0.0
0.0

1022.6
827.4
713.8
230.0
58.8
60.5

410.0
410.0
410.0
410.0
410.0
410.0

241.8
264.5
326.3
348.3
424.3
449.7

3604.5
3613.4
3586.4
3634.6
3633.4
3721.7

Total

(*) Excluding Rupees in circulation. Money and Banking Statistics revised from 30 June 1994.

45

RMA. Annual Report 2000/2001

0 611.5 3.0 1030.2 946.0 520.0 250.5 8.0 805.0 350.9 4. Annual Report 2000/2001 .0 6.5 5.5 7.0 110.0 500.5 8.0 300.0 6.0 595.0 5.0 6.0 555.0 150.0 540. R040 R041 R042 R043 R044 R045 R046 R047 R048 R049 R050 R051 R052 R053 R054 R055 R056 R057 R058 R059 R060 R061 R062 R063 R064 R065 R066 R067 R068 R069 R070 R071 R072 R073 R074 R075 R076 R077 R078 R079 R080 R081 R082 R083 R084 R085 R086 R087 R088 R089 R090 R091 R092 R093 R094 R095 R096 R097 R098 Auction/Tap Sale date 2-Jan-97 5-Feb-97 13-Mar-97 3-Apr-97 7-May-97 12-Jun-97 3-Jul-97 6-Aug-97 11-Sep-97 2-Oct-97 6-Nov-97 11-Dec-97 31-Dec-97 5-Feb-98 12-Mar-98 1-Apr-98 7-May-98 11-Jun-98 30-Jun-98 5-Aug-98 9-Sep-98 28-Sep-98 4-Nov-98 9-Dec-98 28-Dec-98 3-Feb-99 10-Mar-99 25-Mar-99 5-May-99 9-Jun-99 24-Jun-99 4-Aug-99 8-Sep-99 17-Sep-99 2-Nov-99 7-Dec-99 22-Dec-99 1-Feb-00 6-Mar-00 21-Mar-00 3-May-00 5-Jun-00 19-Jun-00 1-Aug-00 4-Sep-00 18-Sep-00 1-Nov-00 4-Dec-00 18-Dec-00 30-Jan-01 5-Mar-01 19-Mar-01 30-Apr-01 4-Jun-01 18-Jun-01 31-Jul-01 3-Sep-01 17-Sep-01 29-Oct-01 Maturity in Days Received Accepted Discount Rate (%) 91 91 91 91 91 91 91 90 91 90 90 91 91 91 91 90 90 90 90 91 91 91 91 91 87 91 91 91 91 91 91 90 90 90 91 90 90 92 91 90 90 91 91 92 92 91 90 91 91 90 91 91 91 91 91 90 91 91 91 685.0 500.0 3.0 4.0 150.0 110.0 625.0 640.0 150.0 500.0 620.0 585.5 8.5 8.0 110.0 300.0 400.0 150.0 9.5 8.0 600.0 7.0 680.0 500.Table 9.0 500.0 4.0 300.0 585.0 150.0 724.0 6.0 150.0 6.0 7.0 650.0 530.0 650.0 6.0 8.0 250.9 4. millions of Ngult Auction/Tap Sale No.0 520.0 5.0 300.0 565.0 250.0 570.9 8.0 570.0 550.0 500.0 700.0 600.0 150.0 150.1 605.0 500.0 620.0 110.2 790.0 6.0 150. Auctions were discontinued and Tap Sales were introduced.0 3.5 5.0 110.0 660.0 110.0 9.0 250.0 535.0 705.0 150.0 150.0 110.0 250.9 4.0 250.0 300. 46 RMA.0 8.0 535.0 150.0 6.0 7.0 110.0 8.5 8.0 6.0 110.0 300.0 150.5 8.0 520.0 150.0 671.0 660.0 510.0 250.0 775.0 150.0 500.5 8.5 5.0 5.5 5.0 150.0 500. Auctions/Tap Sales of RMA Bills Bids.0 765.0 110.0 250.5 8.0 575.0 150.0 1110.0 620.0 300.9 6.0 580.0 6.0 300.5 8.5 9.0 250.0 150.0 *) Starting from October 29.8 5.0 400.0 150.0 350.4 5. 2001.0 6.0 110.5 6.5 8.5 8.0 6.5 8.5 9.0 500.0 5.0 110.0 555.0 250.0 150.0 150.0 150.0 300.0 150.0 250.0 4.0 635.0 110.0 620.0 110.5 6.

6 2149.1 741.1 109.7 492.0 50.1 425.0 0.7 287.2 215.2 51.7 4962.3 82.0 50.8 55.1 766.7 213.6 104.9 733.7 3021.6 466.3 41.8 1153.7 449.6 554.0 1819.4 919.7 2622. porations Corps.6 50.0 50.9 1741.9 1129.1 332.4 2085.5 353.8 770.9 2726.6 8437.6 2.Cor.6 53.7 409.3 356.4 67.2 1054.0 7237.8 642.2 1416.6 217.6 1.1 795.3 2495.1 4118.1 394.0 50.1 131.2 64.0 238.0 515.0 50.3 22.5 121.5 252.9 2444.7 332.8 7326.8 485.1 2213.5 2579.4 2984.0 2155.0 373.0 0.8 7932.7 405.6 7329.0 63.9 229.0 50.4 333.7 533.6 76.9 306.0 50.6 2.5 2732. Sector 453.5 353.0 193.4 122.0 36.3 120.4 7813.9 505.4 15.8 2.9 1001.1 6613.4 1326.7 3367.9 23.0 141.8 348.6 946.2 13.0 0.1 8379.1 353.5 6.8 629.1 2904.3 470.0 2076.2 372.1 2636.0 6815.1 320.9 460.3 332.0 1854.4 2036.1 2238.9 606.5 237.0 50.2 533.9 7664.3 278.5 4134.8 1925.3 166.4 1391.1 7543.0 521.9 433.1 0.0 121.0 344.0 0.1 3046.5 566.3 6909.0 2058.6 2923.7 2769.8 2982.0 581.7 139.9 25.3 26.7 333.8 568.5 560.8 3993.3 115.3 119.7 7366.1 453.9 677.2 2640.1 2395.5 4.7 332.9 35.4 848.1 411.2 1416.4 4045.1 542.2 501.5 2102.6 50.1 1861.8 692.8 534.4 372.3 542.8 768.9 2.0 407.3 2413.2 2280.3 513.1 3699.on Joint Private Others Govt.2 887.7 2549.9 182.5 190.6 128.2 187.8 424.5 7129.0 502.0 372.6 144.6 483.0 3206.3 7105.0 2328.4 3390.9 192.7 13.9 30.3 333.5 2.1 508.4 2573. Bank of Bhutan-Money and Banking Statistics Millions of Ngultrum Assets Foreign Assets End of Period 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec 2001 Jan Feb Mar Apr May Jun 47 Total Reserves with RMA Total Rupee Claims on Claims Claims on Claims on Govt.3 3141.1 2078.5 5743.0 218. Annual Report 2000/2001 .Table 10.3 2903.6 124.1 372.7 2383.6 129.1 57.0 50.4 2382.5 100.5 604.4 244.0 50.2 6830.0 753.4 27.9 2577.1 4068.2 43.6 135.8 516.3 426.7 2080.6 132.5 1545.9 2534.0 50.3 84.6 353.0 200.4 475.4 497.0 0.0 305.1 3418.5 32.6 560.5 903.0 50.4 1252.5 2070.2 6989.0 50.6 353.7 113.9 45.6 6838.1 3921.8 138.6 19.8 488.4 948.3 143.6 2524.0 0.5 2672.2 3270.5 680.8 827.1 192.2 537.9 284.8 212.0 509.0 50.2 2130.8 636.0 0.6 119.0 688.9 3363.6 434.2 135.9 433.0 57.2 373.5 50.0 0.1 2831.1 61.8 3943.0 0.9 1975.0 58.6 556.0 113.4 352.5 RMA.6 1988.5 585.7 1009.1 310.5 3058.0 50.6 768.5 2350.2 4064.0 0.3 552.1 420.0 9.2 11.7 7380.5 113.7 2916.0 3212.2 112.5 7716.

48 RMA.3 1.1 6613.2 567.0 0.3 2151.5 1.3 451.5 1068.6 196.9 2726.0 0.5 0.0 0.3 292.0 26.2 240.4 7543.3 7366.0 0.3 1064.2 567.0 0.0 0.4 183.3 42.0 87.1 3466.8 53.9 135.8 0.0 0.9 176.8 742.0 0.1 0.8 307. CONTINUED Bank of Bhutan Millions of Ngultrum Liabilities Foreign Liabilities End of Period 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec 2001 Jan Feb Mar Apr May Jun Total Demand Foreign Deposits Time Currency (1) Deposits Deposits Total Credit Govt.1 2238.0 55.1 1054.3 630.0 0.0 451.7 387.1 1199.3 451.0 0.1 515.8 0.0 0.0 3744.3 285.3 9.0 0.7 46.9 694.0 0.0 0.0 0.0 0.0 0.0 0.3 1998.0 Other Items (Net) 121.8 497.8 408.8 2831.7 1975.8 183.0 0.0 26.5 473.0 0.3 186.1 792.5 59.8 7326.9 268.1 314.5 269.3 451.9 2987.6 223.3 7105.0 0.0 0.1 175.6 0.6 2281.3 311.1 1055.2 2574.0 0.3 847.5 5743.1 1199.1 696.1 2146.3 410.3 213.7 529.6 8437.5 3619.0 0.3 3860.3 451.1 132.8 825.3 451.1 236.6 323.0 0.3 3291.0 0.3 451.TABLE 10.0 0.5 1064. rupee liabilities are shown separate and are not included in Other Liabilities anymore.9 202.6 595.0 430.0 400.0 0.7 326.8 80.0 0.5 3747.2 2029.1 12.4 1258.4 671.0 0.7 0.0 199.0 0.8 471.0 0.0 0.1 3462.0 0.8 2860. Annual Report 2000/2001 .4 2943.7 6989.0 2107.4 118.0 0.1 278.1 163.2 622.6 1329.0 533.8 299.8 828.2 84.0 0.5 604.3 37.5 3327.0 0.0 0.3 110.8 513.5 2787.5 2280.9 768.3 42.4 494.0 0.3 451.2 2100.0 458.1 741.3 451.7 4962.8 513.9 229.0 0.5 344.1 3504.0 0.7 851.8 7932.7 2371.5 1343.0 0.2 345.7 77.8 513.4 390.4 118.0 0.0 0.0 0.0 571.0 371.5 0.0 0.0 0.0 0.0 0.9 487.0 136.0 0.2 -63.6 257.7 201.0 111.9 329.4 7813.0 0.2 1416.6 191.5 67.6 281.0 0.5 889.0 0.4 201.0 0.0 0.7 450.1 1370.3 6909.7 84.0 0.4 303.0 0.4 3763.0 0.5 7129.3 110.0 6815.1 1084.3 37.0 0.0 0.0 0.8 (1) Demand Deposits include Saving Deposits.9 227.6 45. From January 2001 onwards.0 88.2 691.0 0.0 0.0 0.0 0.3 37.0 0.3 139.1 3921.8 1506.4 1015.0 358.4 1258.6 241.0 0.8 -13.0 0.0 0.6 150.8 1822.4 -89.0 0.1 2.7 232.5 330.9 779.0 0.0 155.3 2366.9 0.5 200.9 266.0 0.1 399.1 415.4 2984.1 221.0 0.0 1129.1 24.4 176.0 0.1 26.0 0.5 288.3 201.5 2817.7 -94.0 0.0 300.8 825.9 1741.1 2842.0 7237.0 0. Money and Banking Statistics revised from 30 June 1994.0 0.3 513.0 87.7 282.0 0.3 451.5 7716.5 1892.2 134.8 513.5 946.6 2572.6 6838.9 276.9 357.0 0.4 503.1 0.3 95.3 1897.1 265.0 137.4 799.1 459.8 639.1 8379.2 505.0 0.4 494.0 0.0 0.3 263.7 495.7 54.8 53.0 357.0 0.8 1281.6 3075.2 356.0 0.0 0.2 6830.5 15.7 46.0 201.0 0.0 65.0 0.9 7664.4 289.9 156.4 513.7 1034.0 1905. from Capital Rupee Others Deposits RMA Accounts 453.0 0.0 0.0 0.4 146.0 96.0 3103.9 1651.0 0.7 451.0 0.9 158.1 235.9 1266.6 3369.7 7380.0 0.0 0.0 212.3 22.0 0.0 0.0 0.6 371.6 45.3 451.2 2119.0 0.6 7329.5 2981.7 117.8 577.2 134.2 104.8 1638.8 2022.0 0.7 300.

2 963.1 0.3 1844.0 7.6 2151.3 635.6 2286.0 1239. Annual Report 2000/2001 .3 231.9 77.0 0.1 473.0 0.0 0.8 1167.0 0.4 100.7 0.3 1735.6 992.7 940.7 833.7 761.7 535.3 342.5 663.1 3488.2 1671.1 9.1 168.1 930.8 1328.6 219.0 1702.0 0.2 1756.8 498.5 7.9 2486.7 335.9 1519.4 554.7 3225.5 332.8 2159.4 827.6 223.4 1261.5 2622.9 393.9 803.8 453.8 228.0 0.0 719.6 213.0 0.5 689.3 1066.0 5.9 428.6 695.0 10.9 1189.6 2736.3 3702.0 0.0 0.0 5.5 147.4 7.0 1015.7 2205.0 5.0 0.0 0.5 600.0 5.8 3484.4 2024.0 0.8 1511.6 1153.5 1633.8 7.0 0.0 0.4 2094.0 0.6 531.2 3018.0 357.0 0.3 881.9 0.0 0.3 3452.0 722.0 0.0 5.1 2044.0 0.0 0.2 1481.3 815.9 256.6 128.1 1523.2 1499.7 673.5 1292.4 549.5 1852.3 612.6 58.1 2889.2 359.0 0.5 7.2 7.0 0.1 7.3 416.4 826.7 632.0 5.0 5.4 142.5 9.0 0.5 1354.8 847.4 300.0 0.6 1056. Bhutan National Bank .2 675.7 249.6 164.0 3697.6 228. Corps.Money and Banking Statistics Millions of Ngultrum Assets Foreign Assets End of Period 1997 1998 1999 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec 2000 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec 2001 Jan Feb Mar Apr May Jun 49 Total Reserves with RMA Total Rupee Claims Claims Claims on Claims on Govt.2 644.0 297.4 2850.0 5.0 0.8 574.3 777.8 1489.9 763.0 0.1 944.2 7.2 2029.5 2875.8 282.0 0. Corps.3 1030.0 0.0 0.9 3527.0 10.8 247.1 541.8 725.0 5.3 0.1 483.1 299.3 642.0 0.0 815.0 0.0 10.0 5.0 0.0 786.9 502.0 5.0 0.5 869.0 0.0 0.7 308.0 0.0 2044.3 901.8 3366.0 5.3 666.6 3434.6 720.8 10. Sector 914.1 RMA.8 339.9 1765.4 357.2 1526.7 738.9 2221.0 529.1 3768.5 1473.1 297.4 1499.0 0.0 0.5 7.3 564.9 1320.1 711.0 0.8 789.5 7.1 122.0 0.8 2040.1 241.8 760.3 2928.0 0.4 386.0 0.8 308.8 9.7 258.0 0.0 0.6 2898.0 827.7 256.8 1755.0 0.0 0.5 1258.3 514.2 250.9 1492.4 271. on Joint Private Others on Govt.9 474.2 767.2 104.9 1034.6 918.0 0.3 2035.7 135.4 1624.2 2697.0 0.3 2111.0 0.0 0.3 1299.9 1191.0 1703.3 1737.0 3743.4 1454.0 0.0 5.0 0.0 0.8 847.5 1659.0 0.0 0.0 0.9 621.4 547.Table 11.0 666.3 289.0 0.3 319.0 0.0 0.8 1223.4 295.3 292.0 1531.0 5.5 419.0 0.0 454.0 5.9 668.5 583.5 971.0 1552.

6 1536.0 0.2 397.0 0.1 22.7 Mar 1624.0 64.6 0.9 353.0 0.1 1998 1999 Jan 1523.2 0.8 11.0 139.4 2000 Jan 2697.0 338.4 21.7 4.2 271.5 0.7 1647.9 346.0 987.0 181.4 0.5 0.0 0.0 267.1 16.0 219.0 261.2 5.9 1794.0 1486.8 2024.4 0.0 0.0 14. 50 RMA.0 0.1 0.0 0.8 0.9 370.6 17.1 0.0 343.9 311.2 1582.6 0.0 277.8 Mar 3527.9 Aug 3225.7 0.2 1718.2 464.0 0.5 0.0 0.0 0.4 1955.0 157.9 312.4 0.0 193.9 499.4 269.9 398.3 0.0 May 3743.0 507.8 388.0 0.0 174.0 0.2 0.0 354.0 0.3 603.3 2070.0 364.9 May 1702.0 0.0 281.0 291.2 222.0 0.6 23.6 1506.7 2109.7 0.0 0.6 493.6 Jun 2928.0 Aug 2035.0 0.8 30.6 1340.2 445.0 0.7 0. CONTINUED Bhutan National Bank Millions of Ngultrum Liabilities Foreign Liabilities End of Period Total Demand Foreign Credit Other Deposits Time Currency Govt.8 0.2 24.4 0.0 0.0 501.2 0.0 65.0 223.3 777.2 0.2 0.1 0.0 0.5 (1) Demand Deposits include Saving Deposits.0 0.4 115.0 257.0 188.8 July 1844.7 87.0 0.7 5.5 15.0 0.1 6.3 18.9 304.0 0.0 0.0 0.0 0.0 0.0 194.0 283.8 143.6 0.3 272.5 127.0 213.0 0.1 1245.0 0.1 20.8 0.0 294.0 343.1 390.0 283.0 0.9 0.5 21.4 400.0 0.4 572.0 280.0 0.2 0.9 887.3 676.0 310.0 164.9 1997 1292.0 681.0 609.6 6.6 448.0 0.0 191.0 Jun 3768.1 Oct 2487.3 17.4 0.2 761.0 189.0 434.0 0.0 0.3 0.0 0.9 0.6 299.0 0.0 0.0 0.2 224.0 Feb 3434.0 239.5 2078.5 0.0 178.5 1561.6 Sept 2286.0 352.0 331.0 285.0 17.0 347.0 285.0 0.7 30.0 337. Annual Report 2000/2001 .4 755.6 0.0 Nov 3488.3 1614.0 0.0 322.5 1913.0 175.6 297.6 1577.7 0.0 0.8 310.0 0.0 0.0 333.0 0.9 16.6 463.3 355.0 166.7 101.3 Dec 3705.1 396.0 314.9 770.1 0.3 585.9 Apr 2850.6 0.3 0.7 0.7 59.5 0.9 Jul 3018.9 0.0 0.0 0.7 0.2 Apr 1671.0 487.0 0.9 0.9 16.0 0.7 1897.0 0.9 Feb 1481.2 1892.0 0.0 217.0 184.7 14. from Capital Items (1) Deposits Deposits Total Rupee Others Deposits RMA Accounts (Net) 914.0 282.0 0.8 2001 Jan 3366.7 523.8 10.3 0.8 0.0 0.3 671.4 0.0 0.0 0.1 15.7 0.0 242.0 0.0 0.0 195.0 0.9 0.3 435.0 Apr 3697.4 61.9 270. the Unit Trust of Bhutan was converted to Bhutan National Bank (the second commercial bank in the country).3 399.0 0.4 392.4 406.1 541.0 268.2 Feb 2875.7 Nov 2622.0 0.3 259.1 755.0 295.9 1921.0 164.5 123.0 158.0 0.6 0.1 20.5 10.0 184.5 0.0 194.3 0.0 185.0 0.0 0.0 2174.7 17.0 25.0 0.3 Jun 1755.5 382.0 287.0 0.0 339.3 Sept 3484.0 186.6 0.0 160.7 92.0 199.8 May 2889.7 0.2 28.5 Dec 2736.8 11.TABLE 11.2 0.7 123.0 489.8 532.0 0.2 93.8 73.4 0.7 22.8 796.8 0.0 0.5 117.1 530.0 270.0 318.3 Oct 3452.7 0.0 0.0 0.0 0.4 0.5 1100.3 Mar 2898.0 0.0 0.-In January 1997.0 301.

8 1365.6 519.8 144.5 353.1 2002.0 50.3 1074.6 3682.4 8996.6 149.0 146.7 158.9 3317.9 10064.2 10632.9 411.7 1462.3 4535.8 152.0 50.6 1361.6 129.1 118.3 392.8 10604.8 1027.7 3522.7 3507.7 3442.0 9705.1 8789.0 9218.4 630.0 50.9 1347.Table 12.1 3503.7 11518.6 50.4 50.0 141.0 411.2 372.5 3549.9 1321.1 3646.6 391.5 11031.2 4989.0 449.9 1587.6 4150.1 4262.2 120.2 544.2 1284.8 1527.6 3741.5 1384.5 153.0 50.4 352.7 9728.9 3011.0 50.0 50.2 4669.9 1302.8 4668.0 10345. on Joint Private Others on Govt.6 50.4 4324.9 638.1 372.6 411.0 50.0 1006.0 50.3 2895.1 982.8 4403.3 3352.2 4085.4 3478.7 3510.7 3023.9 515.1 4940.4 223.2 1084.3 5128. Annual Report 2000/2001 .6 3290.7 140.5 282.0 1006.0 50.5 3623.3 4366.7 1099.7 2447.9 3050.6 137.5 4840.8 11675.0 50.1 392.5 410.2 373.0 3686.1 4563.6 1338.2 3998.7 3412.3 3068.4 4344.4 3422.6 200.1 11116.5 3707.2 1623.7 2018.0 344.4 4429.6 167.9 677.7 332.0 50.4 3851.3 2763.8 1934.6 981.4 410.3 3224.4 3462.3 2781.3 332.4 3657.6 3395.4 295.6 1298.0 1231.4 4663.0 1248.2 4716. 51 RMA.3 3135.1 391.1 127.6 1811.8 143.1 411.6 353.7 126.7 3667.9 304.3 12147.6 3433.0 50.1 372.0 50.8 3762.0 372.0 50.0 2971.9 1030.7 333.1 2729.7 3674.0 50. Deposit Money Banks – Money and Banking Statistics Millions of Ngultrum Assets Foreign Assets End of Period 1997 1998 1999 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec 2000 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec 2001 Jan Feb Mar Apr May Jun *) Total Reserves with RMA Total Rupee Claims Claims Claims on Claims on Govt.4 960.7 118.8 3297.9 126.0 2785.0 50.0 1103.3 2900.1 3774.1 3627.7 3955.6 353.5 4359.2 1294.7 161.4 4505.1 353.2 3260.6 9714.0 5628.7 12134.7 1859.6 7905.4 171.9 1498.2 8123.2 4551.0 50.5 11069.1 8365.4 3329.1 136.8 174.0 830.0 50.1 10564.7 3343.8 1092.5 126. Corps.1 4876.7 793.6 1337.7 50.9 4165.0 9839.3 8741.5 3507.7 332.7 1350.1 3879.1 3433.0 50.8 3397.2 116.1 173.0 50.7 140.5 162.9 392.2 11201. Sector 6657.0 50.8 3551.4 614.5 353.7 1361.8 9645.9 3640.1 1342.0 1352.5 1288.6 420.4 1389.6 1443.3 1441.7 165.3 1118.7 409.6 1132.0 3580.6 2853.0 1911.5 1293.0 10258.5 3220. Corps.1 4607.0 373.9 8384.4 Bank of Bhutan and Bhutan National Bank.0 50.4 10606.4 3991.4 333.7 144.0 50.0 50.4 2729.9 346.2 2643.5 3008.9 8651.7 120.4 4748.0 391.5 1337.5 3475.2 301.1 332.0 50.3 4055.4 4684.1 1360.5 1442.6 133.9 8461.1 4573.3 333.2 4380.5 1265.7 10077.7 4057.7 3290.

2 0.0 0.5 1064.2 1860.9 4166.8 9645.9 1213.1 1199.4 1970.0 0.0 0.0 0.0 0.9 5190.7 222.1 633.2 5541.3 637.2 1383.8 784.0 548.2 2397.0 0.0 0.0 0.8 819.2 647.0 0.0 539.9 0.0 635.2 696.TABLE 12.1 726.2 0.0 0.9 1103.0 0.2 2754.1 197.6 1759.0 0.6 9714.3 371.3 674.0 5084.4 589.6 1658.5 1447.2 11201.0 0.5 2412.6 585.7 4558.0 9839.1 10564.1 11116.8 1018.8 2669.0 0.6 1041.6 2623.4 674.0 0.2 650.1 293.0 0.2 134.9 921.2 1200.0 585.0 0.7 791.0 0.0 0. 52 RMA.2 317. Unit Trust of Bhutan was converted to Bhutan National Bank (the second commercial bank in the country).9 8461.0 0.0 0.0 0.1 1067. CONTINUED Deposit Money Banks Millions of Ngultrum Liabilities Foreign Liabilities End of Period 1997 1998 1999 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec 2000 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec 2001 Jan Feb Mar Apr May Jun Total Demand Foreign Deposits Time Currency (1) Deposits Deposits Total Rupee Govt.4 1006. Others Deposits Credit from Capital RMA Accounts Other Items (Net) 6657.9 4855.6 8123.1 322.1 735.0 0.9 806.7 670.3 10063.4 494.0 829.5 309.7 2275.8 825.0 0.4 10606.9 4367.5 664.8 965.0 0.0 0.3 595.8 948.0 0.9 231.0 0.0 0.2 134.9 5815.7 1879.2 10632.7 195.0 10258.5 2652.0 0.6 5277.0 0.0 0.0 0.7 9728.1 8365.0 0.5 2692.6 298.7 575.1 2594.8 782.1 8790.0 0.6 646.4 570.4 1258.0 0.3 602.1 1685.0 0.0 0.4 3359.8 808.6 12134.0 0.9 275.0 939.9 582.0 333.0 0.6 1368.9 258.2 4269.0 0.0 597.6 756.0 0.9 1068.0 4211.0 0.4 287.9 281.8 825.0 0.0 0.0 0.9 914.8 296.7 5815.2 642.3 244.2 220.0 0.9 0.6 2669.6 831.2 1873.0 0.4 337.0 0.0 0.0 4569.0 0.5 253.0 0.0 0.5 2879.5 1064.8 11675.0 569.0 0.5 5002.9 1203.0 227.5 411.0 0.2 726.0 0.6 7905.0 0.2 4417.3 733.7 1352.4 1702.4 600.0 221.0 0.9 2378.0 0.0 0.8 273.8 3518.9 0.9 631.4 494.5 296.0 0.4 5204.0 568.9 3735. Annual Report 2000/2001 .4 1258.0 2907.2 275.0 0.0 0.8 1465.0 10345.0 0.0 0.0 8385.3 3598.0 0.0 0.3 5558.5 797.0 0.8 1038.6 762.3 372.4 342.9 0.8 574.9 576.2 5516.2 436.4 8996.0 0.0 0.0 0.0 0.8 374.8 1046.0 741.6 9705.5 1974.0 0.1 2769.-In January 1997.0 0.0 0.9 314.2 639.1 1832.4 838.0 0.0 0.1 574.0 0.5 253.7 10077.0 0.9 2364.3 180.0 0.5 5065.4 96.2 1167.0 0.0 4546.4 187.5 2474.0 0.5 0.0 0.5 483.9 415.1 774.0 586.0 795.0 0.0 0.0 5436.0 0.0 0.5 649.0 0.0 0.4 766.0 0.7 4902.2 2340.6 302.9 1430.2 1916.4 11069.0 0.7 698.7 4710.6 5466.0 178.0 0.3 8740.1 2979.2 173.0 0.0 537.0 0.7 645.4 644.6 4653.0 0.2 12147.5 11031.0 0.0 3743.0 0.3 1944.3 1197.2 633.7 11518.7 10604.0 3251.0 0.0 0.6 608.0 0.1 1199.6 4422.0 0.0 0.0 9218.0 209.0 0.0 740.0 0.0 0.5 2889.0 8651.0 0.0 0.0 1300.2 0.0 5016.0 0.8 1926.1 1722.3 (1) Demand Deposits include Saving Deposits.

0 0.7 -33.1 57.8 -1480.7 140.6 3607.5 2811.7 449.7 490.5 3190.4 194.6 1812.7 12493.0 0.3 15661.1 101.1 -991.5 0.9 -287.0 -1499.2 64.0 -379.2 4369.2 1499.1 1133.0 579.0 5. Claims on Joint Corps.8 488.4 3540.8 10134.2 120.7 57.0 1882.9 12665.4 9286.8 2540.0 1384.1 -1169.5 1912.0 -1721.5 3839.1 1077.7 -271.4 1446.0 658.8 14558.2 1487.0 380.5 587.8 485.2 260.0 3.2 187.6 133.4 67.3 -2246.6 19.0 0.6 53.7 3. Corps.5 353.3 1934.2 14626.1 -692.2 14000.6 484.0 3.3 15003.2 11362.9 14331.5 -125.9 1006.9 126.1 2002.0 0.0 -208.2 172.3 1859.1 -304.4 12895.2 372.0 1028.8 7129.9 13044.7 118.0 3.5 -1389.0 3.4 883.2 549.4 3523.1 13456.7 13535.4 352.5 -229.6 236.4 1352.3 3.9 -1558.5 307.8 10840.7 3973.6 1630.0 1384.0 0.6 137.0 521.6 3.0 0.8 143.1 425.4 -164.8 534.1 795.0 0.7 13651.7 223.1 13155.0 9968.8 1449.7 13021.0 0.0 -2126.2 10362.7 144.0 0.2 754.7 332.0 55.5 14.9 2693.8 410.8 -216.9 2195.2 373.0 146.0 13319.7 -1479.4 372.4 333.0 19.9 -250.1 332.7 1360.0 1174.3 333.9 10989.3 82.2 43.3 1361.8 1149.9 306.9 1342.7 126.8 13049.6 -1372.6 -455.3 3306.7 -321.5 317.2 10134.1 353.4 13429.0 -54.4 -1351.3 697.0 0.Table 13.3 3113.5 986.5 13248.0 726.0 3.5 353.0 8300.8 110.1 -46.1 3.5 1349.1 708.2 3194.6 560.3 962.0 0.6 129.8 770.5 32.6 11250.3 1531.3 332. Claims on Private Sector Claims on NMFIs Total Total Rupee 456.4 14163.0 3351.0 0.0 373.1 2413.8 2563.9 2300.4 1389.7 RMA.0 3.0 13829.0 13655.1 14580.6 353.1 9588.1 127.6 2017.2 215.4 14886.0 3.0 238.7 332.8 1360.0 9978.0 5.5 9816.9 3162.4 3434.3 3609.9 10.6 353.0 3.9 -256.1 906.1 868.1 136.0 0.8 15096.9 4428.7 13426.0 1101.5 3711. Total (Net) Claims on Govt.0 13204.1 7341.0 0.0 140.4 1252.7 15198.7 11396.2 14521.3 13658.6 359.0 0.8 10449.4 45.2 83.1 411.5 126. Annual Report 2000/2001 . Monetary Survey Millions of Ngultrum Assets Foreign Assets(Net) End of Period 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec 2001 Jan Feb Mar Apr May Jun 53 Convertible Foreign Currency Domestic Credit Claims on Govt.0 13851.0 3.1 505.1 12788.9 -1875.7 333.8 174.2 6335.2 4526.1 2367.3 -98.2 116.1 118.0 63.7 120.4 3702.0 3.7 3647.5 9619.3 10683.0 0.8 345.5 320.0 3.1 535.9 969.4 27.7 1179.2 595.6 2687.4 14713.1 0.7 179.0 3.8 752.0 3.8 13142.2 1587.5 6580.5 700.0 9889.8 55.3 115.1 -1799.4 575.0 0.5 1624.3 -298.7 54.0 3.7 3031.9 192.3 1444.0 13762.6 260.3 1301.5 564.5 -106.3 26.2 -507.2 3916.6 5478.7 13.7 14806.6 149.6 10080.9 765.7 10395.0 0.0 3.7 -398.4 143.5 3.3 1944.0 0.3 -1992.4 -2097.6 -384.6 2480.9 229.7 15073.3 41.0 0.1 372.4 10351.4 1338.5 -2179.0 13140.0 870.3 3636.0 10421.4 372.7 3.2 9789.1 498.0 5.3 3300.8 5397.1 -313.6 -1110.9 85.9 -927.5 2016.

0 0.4 162.7 3031.0 550.0 97.4 1086.5 2879.8 4538.8 3563.6 2669.8 552.7 194.3 15661.4 8511.9 487.5 1630.9 1121.1 246.3 5738.5 2889.3 4369.0 0.4 14886.6 2563.0 3871.1 2594.0 1926.2 14521.6 5739.2 6578.0 0.7 103. Narrow Money) End of Period 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec 2001 Jan Feb Mar Apr May Jun 54 Currency Outside Banks Demand Deposits NMFI Deposits QuasiMoney Money Market Instrument (RMA Bill) Other Items (Net) Total Total Total 456.2 1351.8 14558.6 122.6 147.3 4854.0 5381.8 99.0 1331.8 122.0 3902.8 412.5 4378.4 9955.7 3128.0 0.8 5814.9 1276.2 8277.1 2979.2 202.0 6042.6 11250.4 103.0 2907.4 551.3 6.4 177.7 94.7 1589.0 4770.0 5587.8 1397.0 0.5 97.0 0.7 3322.3 17.5 179.0 0.9 13044.4 1483.5 4117.8 8910.0 13204.4 14713.0 347.6 98.5 2792.4 10047.0 3251.7 5238.0 5344.6 410.4 3430.1 5141.4 97.2 9.9 1586.5 17.9 5996.4 14163.5 9564.1 1318.6 430.1 46.6 100.9 5710.1 4585.5 1040.5 4857.5 168.2 9848.5 125.3 100.2 4470.2 88.0 125.0 345.2 5.5 889.7 991.7 1269.1 98.0 1374.2 155.5 3455.8 324.3 263.6 4510.9 1651.7 977.4 1465.8 4477.8 98.5 2474.3 5043.4 RMA.0 9.9 539.1 26.1 13456.9 1449.3 4740.7 840.4 90.8 1165.3 5510.2 4718.8 1444.0 0.6 1208.8 969.0 346.2 8930.2 13655.1 535.3 1022.6 9066.2 8952.5 2692.7 3854.1 97.4 1970.4 422.7 8358.8 15096.5 432.1 4949.0 0.6 191.5 9650.1 255.2 3500.3 213.7 4942.2 315.1 187.5 749.0 5664.8 261.0 10.3 26.6 181.6 5778.6 367.5 723.0 4980.0 0.1 97.4 157.0 600.4 503.7 1205.9 4323.8 7129.3 8643.0 1000.2 209.0 0.1 13155.5 4604.9 2565.0 5029.0 358.8 157.2 1384.1 163.0 0.7 15198.4 4004.8 178.2 62.7 3786.2 70.1 696.0 8775.7 311.6 134.2 746.5 2098.1 1120.1 2769.2 1860.0 0.0 0.3 4390. CONTINUED Monetary Survey Millions of Ngultrum Liabilities Broad Money(M2) Money(M1.7 1119.9 0.0 316.5 3831.9 4039.3 697.3 221.0 868.4 1346.0 975.1 545.3 186.4 13851.3 648.0 0.7 0.9 833.0 0.3 2395.9 768.1 14580.7 14806.6 4674.8 10035.3 2196.1 1133.2 1873.0 498.6 4442.5 1346.0 0.5 9286.0 0.0 0.5 720.6 3460.7 5383.7 976.6 3691.0 0.2 115.1 1044.6 4816.2 14000.8 1349.5 10369.1 3803.9 12665.2 1078.2 131.1 754.7 5397.2 539.2 2340.1 9.0 3257.8 87.0 89.8 5652.TABLE 13.5 149.7 22.0 98.1 5148.7 13021.5 2412. Annual Report 2000/2001 .8 235.8 2669.8 3965.2 9.6 1886.5 3996.1 5156.9 105.2 473.2 28.6 2275.8 4216.9 5458.0 464.5 2652.2 2397.6 1447.7 495.1 24.1 10062.6 20.0 0.5 3839.7 3623.9 1953.2 345.3 233.7 4554.8 9121.4 2754.5 9419.7 277.

0 0.0 0.7 1.3 842.8 675.6 682.1 6.7 22.9 28.3 17.7 2.1 29.0 0.2 41.5 1.0 0.7 701.0 0.0 50.0 0.0 0.3 24.1 219.2 41.7 876.9 679.0 0.3 43.2 956.2 54.5 467.0 3.1 14.5 61.7 680.3 1426.0 0.0 0.6 52.1 14.8 750.0 0.4 53.9 1003.5 498.3 13.5 1.0 0.2 60.7 657.1 53.8 6.8 2058.0 0.0 0.7 2.0 0.9 1701.4 23.0 8.0 0.0 0.4 0.0 0.2 41.0 0.7 91.2 392.1 41.2 319.5 30.0 0.9 41.0 60.0 0.1 14.1 1171.5 1.4 672.0 51.0 0.3 233.0 954.0 40.2 53.0 0.0 52.0 102.0 1208.0 1318.8 2.0 0.6 24.3 842.0 0.5 58.8 72.0 0.5 667.1 2.2 41.2 41.0 0.5 354.6 2.0 0.3 868.5 870.0 167.0 0.1 51.4 34.1 759.9 84.4 1027.5 1.5 51.9 81.0 0.5 51.3 0.3 791.0 2022.0 7.8 59.0 50.2 150.5 51.0 0.7 25.1 269.6 2.5 1005.6 23.0 0.3 17.8 655.0 0.4 26.0 0.0 0.6 0.2 17.1 51.5 41.6 1.0 0.9 52.6 1.0 0.0 272.4 152.0 0.6 614.2 41.0 0.5 42.3 898.0 0.6 15.0 0.4 31.1 55.0 0.1 20.0 17.3 888.1 670.1 0.9 50.0 0.9 0.7 51.0 0.0 0.5 51.9 0.6 52.9 0.6 160.2 41.2 71.0 53.0 914.0 20.2 1169.2 41.1 170.5 0.2 9.0 0.Financial Statistics Millions of Ngultrum Assets Foreign Assets End of Period 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec 2001 Jan Feb Mar Apr May Jun 55 Total Claims on Govern ment Claims on Claims Enter Private on Rupee Others prises Sector DMBs Claims on Real NMFIs Estate Reserves Total 140.0 6.4 2.3 17.5 50.8 0.7 20.6 18.2 184.2 676.8 71.0 0.Table 14.6 983.8 701.1 54.9 0.3 17.7 20.7 131.0 RMA.3 677.0 0.3 0.3 514.1 57.9 1.0 0.2 0.8 51.4 0.0 0.2 83.0 0.5 901.3 262.0 0.1 52.0 0.7 20.0 0.0 1158.2 0.8 610.0 0.0 0.0 0.0 48.0 0.8 95.8 2.4 41.9 18.7 190.4 907.0 18.0 0.0 0.9 53.0 20.0 0.9 20.0 0.6 7.0 0.0 0.5 2039.3 50.1 21.0 0.5 94.6 -16.0 0.8 6.7 2.0 0.0 0.5 2094.2 45.9 0.0 0.1 56.0 1123.0 0.6 669.0 0.2 83.5 769.5 0.2 18.0 0.5 57.0 0.0 0.9 50.4 956.5 1171.7 23.2 41.0 321.0 0.0 0.0 0.3 61.6 1.0 0.0 7.4 728.0 0. Royal Insurance Corporation of Bhutan .3 17.0 0.8 2.6 150.4 32.8 57.2 41.9 992.2 41.0 0.0 0.1 1012.5 835. Annual Report 2000/2001 .0 0.6 52.0 12.0 1178.0 75.1 51.0 0.2 2224.8 50.6 151.4 720.7 73.8 669.8 7.0 40.4 0.0 2030.0 0.0 17.6 115.1 932.7 2.1 2.0 2.3 2146.0 0.0 911.3 17.0 0.6 764.5 1.4 51.0 0.2 31.0 0.6 35.4 0.3 958.0 0.

6 119.6 1709.0 0.9 21.0 0.7 78.0 505.8 254.8 765.9 34.0 0.1 954.9 -23.3 44.1 61.5 -53.9 1003.2 -140.4 -36.0 49.9 0.TABLE 14.0 0.1 185.6 318.0 0.1 30.0 60.0 0.0 12.0 0.6 44.6 463.6 49.4 89.2 12.9 992.5 -154.4 956.4 448.3 0.0 0.6 12.0 0.3 0.2 73.2 15.9 536.3 118.0 0.8 2058.0 0.4 -254.5 47.9 -47.7 -30.8 45.3 119.0 0.0 0.0 182.6 49.9 4.0 0.8 610.0 12.2 -130.1 -21.9 516.6 116. CONTINUED Royal Insurance Corporation of Bhutan Millions of Ngultrum Liabilities General Insu End rance of Reserve Period Total Fund 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec 2001 Jan Feb Mar Apr May Jun Life Fund GEPF Fund Group Insurance Fund Credit from DMBs UTB Fund Capital Accounts Other Items (Net) 140.7 118.7 71.5 2094.8 509.0 0.0 12.0 0.5 1474.2 956.0 0.0 0.4 115.6 6.0 0.4 45.1 475.0 12.8 5.0 0.9 111.2 261.5 119.4 122.1 -216.4 -23.9 1636.6 -1.9 247.0 0.5 45.0 34.2 1169.0 0.0 0.2 312.8 368.8 149.0 240.3 210.6 983.6 540.8 125.8 0.0 12.0 12.7 93. Annual Report 2000/2001 .0 0.0 0.0 12.7 49.4 34.5 256.0 0.9 10.0 0.7 876.0 23.7 132.0 12. 56 RMA.0 0.0 71.2 131.5 48.6 83.3 958.3 408.3 -94.4 -173.9 476.3 792.0 0.1 932.0 0.5 111.2 171.0 12.0 0.6 21.4 102.1 15.3 1426.0 80.5 1005.6 -120.9 121.9 21.0 23.4 115.0 -29.0 85.6 7.4 132.0 0.0 0.9 180.6 0.8 70.0 0.0 0.1 219.0 34.8 121.1 170.6 123.0 0.1 63.1 19.7 49.0 0.0 0.0 21.8 9.1 1012.0 0.6 64.0 92.0 0.5 2039.0 0.0 90.9 21.9 516.0 0.3 888.3 175.0 240.2 -13.8 116.8 5.7 58.0 0.0 0.0 0.0 12.9 124.0 0.8 682.5 256.3 402.5 769.4 34.4 209.8 589.7 155.6 70.4 9.0 33.0 43.3 14.0 1866.0 0.0 260.0 0.0 0.0 0.0 0.6 72.0 911.0 0.3 72.1 Money and Banking Statistics revised from 30 June 1994.5 467.0 0.0 1606.8 -29.1 130.2 2224.6 542.9 21.0 2030.9 256.1 886.3 2146.9 21.0 0.9 21.0 0.2 133.0 240.1 269.8 7.0 0.5 34.0 690.4 44.0 0.0 0.5 354.3 95.0 0.0 0.0 21.5 7.0 0.7 131.1 120.2 163.0 126.1 106.2 95.5 0.0 0.0 12.6 151.6 121.1 1363.9 6.6 43.0 9.0 107.0 0.8 117.4 1027.1 145.8 1112.8 66.0 79.4 35.5 241.1 50.0 0.0 0.0 2022.0 0.0 0.0 260.5 -6.9 675.9 1701.6 1632.6 240.1 461.4 -132.3 36.8 178.0 407.0 0.5 44.7 94.2 465.0 868.9 82.6 115.5 1636.7 118.4 41.

0 0.0 0.0 25.0 0.2 297.0 0.0 0.0 0.5 3.2 39.0 0.7 0.4 1.0 0.0 0.8 17. Sector DMBs (1) NMFIs 124.0 0.1 94.0 0.0 0.4 61.0 0.7 28.0 0.7 680.0 0.0 0.0 0.0 0.9 425.0 0.0 0.8 470.0 0.0 0.0 0.9 0.9 464.1 94.4 1.0 0.2 18.0 0.0 0.0 0.0 1.0 0.1 152.1 0.1 94.1 140.Table 15.1 581.5 22.0 0.5 377.8 2.0 0.0 0.0 0.0 0.0 0.0 0.1 454.5 513.0 21.1 148.1 508.0 0.0 0. on Joint Private Claims on other Reserves Total Rupees Others on Govt.7 700.4 1.0 0.9 0.0 (1) Deposits other than Demand Deposits.0 0.0 0.6 21.0 0.2 678.0 0.0 0.0 0. 57 RMA.0 0.3 3.0 107.0 0.0 0.9 35.7 17.0 0.1 450.0 0.0 0.8 457.9 513.2 572.0 0.0 0.5 230.1 148.0 0.0 0.4 492.0 0.0 0.4 1.0 0.0 0.8 465.7 15.8 500.0 0.8 1.7 74.3 700.8 551.0 0.0 0.0 0.8 0.0 0.0 0.0 0.8 676.0 0.7 22.4 0.9 0.1 130.0 0.3 28.9 587.0 0.0 0.0 0.0 0.0 0.0 713.0 0.0 0.0 0.0 0.0 0.0 690.0 0.1 101.1 86.0 0.1 150.1 131.0 0.0 0.6 28.1 618.0 0.0 0.7 21.0 0.0 0.0 0.4 1.0 0.9 642.8 465.1 114.0 28.0 0.1 422.0 0.9 502.4 1.1 148. Corps.0 0.7 175.1 132.4 0.6 406.0 0.2 28.0 0.1 616.0 0.9 0.0 0.9 0.0 0.0 9.0 0.0 0.1 30.0 0.0 0.0 0.0 0.0 0.0 103.0 0.0 0.4 35.6 696.0 0.0 0.0 450.0 0.0 0.8 1.6 514.0 0.5 0.0 0.0 0.0 0.0 0.9 4.1 15.9 0.0 0.0 0.2 34.0 0.3 2.0 0.6 539.0 0.0 0. Corps.8 22.6 696.0 0.0 0.0 0.0 0.4 1.0 0.0 0.3 711.1 140. Annual Report 2000/2001 .7 33.4 1.0 0.0 0.7 0.4 1.4 1.9 29.0 0.3 349.0 0.0 0.0 569.0 462.0 500.0 0.0 0.0 0.7 19.4 2.0 0.8 708.0 0.0 32.7 24.9 602.0 0.0 0.0 0.4 1.0 0.3 46.0 4.6 147.7 41.1 137.3 566.2 583.0 0.0 0.0 0.0 0. Bhutan Development Finance Corporation – Financial Statistics Millions of Ngultrum Assets End of Period 1992 1993 1994 1995 1996 1997 1998 1999 2000 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec 2001 Jan Feb Mar Apr May Jun Foreign Assets Total Claims Claims Claims on Claims on Claims on Govt.1 117.0 0.0 0.9 0.0 1.0 0.0 301.0 0.

9 0.9 104.2 75.0 0.5 186.0 0.1 100.0 50.5 307.3 234.0 0.3 50.0 1995 425.6 270.8 234.0 50.0 0.0 0.0 50.0 0.0 Apr 711.0 0.0 0.5 72.2 0.0 Apr 602.0 269.9 107.5 63.7 RMA.0 0.0 0.7 37.0 0.0 Aug 676.0 50.9 269.0 Jun 713.0 0.0 0.0 228.0 0.0 0.9 0.5 55.8 301.0 Money and Banking Statistics revised from 30 June 1994.3 94.0 0.0 0.7 67.1 51.0 0.0 0.5 165.0 50.0 1994 349.7 24.9 155.8 0.0 0.7 119.0 50.8 72.0 0.9 50.9 0.2 242.0 May 708.0 0.0 0.0 Mar 700.0 1999 2000 Jan 569.9 0.0 50.0 307.0 0.9 0.8 -3.0 50.3 20.0 0.3 234.4 308.0 1992 175.0 0.0 0.8 0.0 1998 566.0 0.0 50.3 101.0 0.9 225.1 185.0 0.1 225.9 302.4 0.0 Feb 581.4 39.8 141.7 228.0 May 616.0 34.0 0.0 0. 58 Credit from other NMFIs Grants Capital Account Other Items Net 0.6 0.7 224.3 53.3 1993 297.5 285.9 0.0 0.0 1996 470.1 355. CONTINUED Bhutan Development Finance Corporation Millions of Ngultrum Liabilities End of Period Total Foreign Liabilities Credit from RMA Credit from DMBs 124.7 307.0 0.0 50.0 Dec 696.9 14.2 -4.6 169.5 111.0 1997 513.6 98.1 106.0 0.8 69.2 224.0 50.3 76.0 0.1 308.0 50.0 50.9 0.5 234.8 0.0 Nov 700.0 2001 Jan 690.7 224. Annual Report 2000/2001 .0 0.0 Mar 583.9 0.0 0.7 0.0 50.0 0.9 196.0 230.0 Sept 678.0 0.0 Jun 618.0 0.0 301.0 50.0 0.3 168.8 224.0 50.2 126.9 62.0 Jul 642.0 0.6 236.3 233.0 0.0 50.0 0.0 80.1 209.0 7.0 0.9 0.4 0.2 270.1 68.8 121.9 0.0 0.6 271.0 0.6 274.0 0.Table 15.4 302.1 287.6 65.3 0.2 196.0 50.0 Oct 680.5 0.9 0.9 0.0 0.8 0.0 0.9 103.4 0.0 0.5 267.2 0.0 Feb 696.0 50.0 0.6 254.0 50.

Table 16. 59 Financial Sector Investment by Economic Activity RMA. Annual Report 2000/2001 .

3 3165.3 - 5.6 12.8 217.6 116.0 0.Total reserves (1+2) 4.9 2.9 4.0 11.2 3.7 140.7 114.9 118.5 174.9 145.1 221.7 200.2 41.2 Royal Monetary Authority of Bhutan (1) 87.0 0.1 0.0 292.9 1328.0 0.0 3.7 186.7 91.7 Bhutan National Bank - - - - 5.2 (1) Includes reserve tranche position in the Fund.3 Royal Insurance Corporation of Bhutan - - - - 51.4 95.0 150.4 1863.6 193.Convertible currency reserves Bank of Bhutan Bhutan National Bank Royal Insurance Corporation of Bhutan 3.8 0.6 294.6 14.7 72.4 106.6 913.7 259.8 37.0 583.0 89.4 Bank of Bhutan 49.1 216.5 197.Table 17.3 102.5 958.9 120.7 1819.0 39.8 1404.8 125.6 1517. 60 RMA.5 2149.4 - 4.0 0.1 33.1 Royal Government - - 2. Annual Report 2000/2001 .3 Royal Monetary Authority of Bhutan 30.0 0.0 0.3 - - - - - 6.0 94.4 16.2 - 4.5 98.8 2542.3 1191.3 0.0 3617.0 - - - Millions of US Dollars 91.9 102.8 149.1 176.4 34.5 141.3 71.0 0.3 180.5 50.5 33. Gross International Reserves Item Year 1992/93 1993/94 1994/95 1995/96 1996/97 1997/98 1998/99 1999/00 2000/01 Millions of I ndian Rupees 1.Rupee reserves 79.4 135.

7 -317.1 1172.0 380.0 -7388.1 -334.fob India Other Imports.5 201.5 1998/99 4460.7 282.0 -90.0 4181.6 776.1 61 1992/93 1837.2 -342.8 5030.7 -4919.2 -3068.0 -77.0 0.0 -313.0 886.2 -245.1 -856.5 -2309.0 0.0 -378.1 -3063.3 794.0 -109.7 2059.9 -848.0 -125.0 -387.3 786.5 -303.1 1124.3 -607.8 79.1 631.0 -6913.4 -5817.4 -2011.7 805.1 1714.3 158.3 1780.0 0.8 -74.5 -1254.6 464.9 -3053.2 4041.3 1994/95 1995/96 1996/97 1997/98 2196.3 1786.5 -981.9 228.8 -1272.6 -8075.4 -2914.5 1071.8 -453. Balance of Payments Estimates Millions of Ngultrum Period Item 1990/91 1991/92 Exports.5 682.6 -1094.3 -1354.4 -664.1 -1550.6 -50.2 886.8 -1601.8 -2148.4 504.2 554.8 -1302.2 -3802.4 306.3 671.6 -1633.2 815.4 -516.8 -714.3 5981.4 -706.6 -781.4 -172.6 -2469.2 -5226.3 855.9 -3603.5 -205.2 1999/00 4987.8 -4697.2 3349.2 -6065.2 -10.2 -472.9 -529.9 357.0 279.0 -52.4 158.8 136.5 705.4 347.2 315.0 398.2 497.9 347.Table 18.2 -561.0 670.8 -1253.5 -1067.4 -741.2 931.5 -1011.5 1129.6 -564.4 -951.6 0.6 583.9 -148.4 -1861.4 -123.1 -1038.8 7547.4 1589.5 0.1 -90.6 81.9 232.0 270.9 -1525.7 286.6 481.9 293.2 45.4 1882.3 -409.9 -270.2 45.0 7.4 -620.7 -2009.5 1096.0 -4170.7 7.9 -461. Annual Report 2000/2001 .0 0.5 -217.5 -168.0 -1143.5 288.0 -48.2 -1025.2 -1819.4 1887.2 -4740.6 2000/01 (p) 5207.1 1734.3 -1715.3 -688.1 166.3 -1787.8 -663.4 7320.0 1403.9 -2570.7 362.5 -913.2 276.0 0.0 0.8 375.8 229.0 163.4 1364.0 847.0 -806.6 178.5 6550.6 995.9 -639.1 -591.0 204.9 -750.9 1375.0 -72.9 -4778.4 -91.5 -1177.6 796.3 -1994.9 -52.1 452.5 235.1 346.1 -495.3 -923.2 1503.4 -4373.5 -450.9 1632.5 -516.6 2248.8 -976.1 -950.9 622.3 1566.5 957.6 213.3 4918.5 534.0 -71.2 -2065.0 0.8 3227.4 1037.4 224.2 1993/94 1990.7 RMA.0 0.4 552.2 686.1 348.1 631.3 -2790.0 0.1 280.7 700.0 0.4 -77.6 440.9 300.7 -207.9 -293.1 3453.5 215.2 -18.1 3079.1 -1069.2 -1953.6 -2822.0 -621.7 45.5 -1106.1 206.3 495.0 0.3 1389.8 -1071.8 -397.7 1252.4 730.0 1465.3 1522.9 285.8 2867.7 887.7 -738.4 -2453.6 -1294.3 995.1 -4492.cif India Other Trade balance India Other Service and transfer receipts India Other Service and transfer payments India Other Current account balance India Other Foreign aid India Other Other loans India Other Foreign direct investment India Other Errors and omissions India Other Overall balance India Other 1308.5 -1101.3 22.7 -1541.9 2049.5 -1814.2 -219.1 4274.2 94.6 666.3 -1384.2 -250.0 -289.9 -2086.9 -644.2 990.3 713.8 -3956.5 -497.8 -9986.8 -82.0 -937.2 3553.9 4711.1 -2597.1 392.7 465.7 -70.6 1586.5 -190.1 783.5 3538.2 -3803.4 -402.3 22.3 -298.3 80.2 288.0 -167.2 -1629.2 -2890.7 -603.6 849.1 -71.5 -3087.3 -238.5 1692.3 -585.6 -646.4 1742.6 1520.1 -3684.2 701.1 293.1 -825.8 118.9 -279.6 -349.9 -776.9 670.6 -343.2 -5668.0 2396.9 -54.7 5072.8 -1863.4 -1814.8 2159.2 -2228.6 435.3 488.8 71.2 2366.2 -1309.0 0.5 -1732.0 326.7 236.1 -3470.2 -858.0 0.

5 1067.1 1364.8 Current account balance -238.1 -472.4 -54.5 -2469.8 229.2 -402.3 631.0 0.5 -461.cif -1254.1 -97.1 -2790.5 -3068.3 -450.8 357.6 700.4 3812.4 819.2 481.5 -148.9 -591.7 235.8 893.6 1465.5 452.1 -28.9 -1814.1 -279.8 3364.6 631.9 -342.4 224.7 -776.1 201.2 4918.0 4711.5 -13.1 5388.3 -6065.2 1786.1 -343.3 783.3 -1114.8 3079.9 Overall balance -172.6 1378.9 1403.9 -94.6 -620.0 -205.2 -738.7 Tala Other - - - - - - - -1254.fob 1129.0 0.0 71.4 -858.6 -3803.9 -4586.8 - 286.4 -1479.2 -3684.8 -516.3 1218.3 -497.9 -1814.4 158.9 -397.3 79.0 -3063.2 946.5 1707.0 2460.0 2059.3 -387.0 Foreign aid Loans (net) Grants Other loans Errors and omissions -664.1 -1819.1 -2.5 -4373.1 -2086.6 -3956.1 -193.7 -7388.9 -714.5 -3804.Table 19.7 -4919.2 805.0 3227.3 62 RMA.7 -6024.2 -18.1 -13.2 2366.0 849.8 -976.9 732.6 5981.1 -2790.9 -2228.0 0.5 -3068.3 -2065.7 682.1 -981.3 -1354.3 288.0 -250.4 -207.4 -349.0 347.1 -913.5 592.9 -168.2 -663.1 -1363.7 0.5 -495.9 -2228.6 556.0 45.3 5072.0 4041.5 Imports.9 215.0 670.3 293.1 5030.0 -564.5 1096.2 -3656. Balance of Payments Estimates with India Millions of Ngultrum Period Item 1990/91 1991/92 1992/93 1993/94 1994/95 1995/96 1996/97 1997/98 1998/99 1999/00 2000/01(p) Exports.2 -409.1 -2086.9 282.0 -2890.6 -2.6 -646.9 -2822.9 4181.4 730.3 -2065.7 497.3 Trade balance Service and transfer receipts Service and transfer payments -125.4 554.8 -385. Annual Report 2000/2001 .1 1522.8 0.5 228.

Table 20.4 -2009.4 -219.8 Imports.2 279.1 210.7 22.0 600.0 89.0 -688.7 931.1 1714.4 285.5 -2597.2 347.8 -950.3 -361.9 102.1 Overall balance 534.4 Foreign aid 306.1 300.3 -378.0 -303.2 776.4 -750.5 -1106.6 671.2 957.0 -937.1 848.1 945.4 -1732.9 270.8 232.2 -741.0 -77.2 513.6 250.0 276.6 -1069.5 -334.9 209.3 118.1 1347.8 -1629.4 686.3 - - - - - - 45.0 0.0 -1541.1 204.2 0.4 375.3 -470.4 -676.7 352.7 107.0 -416.2 -1094.9 815.3 -825.4 1503.4 407.6 281.2 219.6 -607.0 -464.2 -585.9 435.7 -843.0 94.3 887.6 206.7 1052.fob 178.0 -1332.0 -1550.1 1647.cif -270.0 332.7 552.3 218.0 7.6 488.3 -621.4 136.5 -1067.6 -1015.6 -848.3 -1309.0 1334.9 -529.4 -123.1 -1715.9 186.5 -1294.4 408.8 -603.7 -979.2 0.2 326.5 -82.8 805.8 -806.6 -48.8 -1038.3 200.7 -1067.3 -781.3 -52.2 163.5 845.4 47.1 Trade balance Service receipts 1992/93 1993/94 1994/95 1995/96 1996/97 145. Balance of Payments Estimates with Countries Other than India Millions of Ngultrum Period Item 1990/91 1991/92 1997/98 1998/99 1999/00 2000/01(p) Exports.2 322.8 -1861.1 1520.7 -165.9 Aid-related -115.2 1172.5 -592.1 -1011.3 495.7 -357.4 -1384.6 -167.2 -1601.1 398.2 138.7 Service payments Private transfers Loans (net) Grants Other loans Foreign direct investment 63 RMA.6 -90.3 796.4 -1994.0 Other -154.0 0.8 217.5 317.1 -70.3 293.6 886.1 -595.1 1284.9 -71.1 186.8 779.8 315.5 786.7 1667.1 1071.6 -1302.6 288.8 -168.9 -91.8 -1754.6 1767.3 -473.3 491.4 90.7 444. Annual Report 2000/2001 .7 213.7 Current account balance -74.0 Errors and omissions 346.3 1566.5 -644.5 81.9 166.7 -1027.9 420.0 2248.6 82.4 -1036.0 -72.8 -2309.5 820.

0 1. Annual Report 2000/2001 .4 28.845.0 4.0 95.4 346.6 261.9 0.4 12.7 0.4 112.2 0. 64 1993 1993 1994 1995 0.4 0.9 0.1 0.7 499.9 83.2 31.0 Composition of Trade with India (Exports) ITEMS Animal Products Vegetables.3 0.1 86.4 358.4 14.4 213.3 1997 1998 1999 0. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 1994 1995 54.3 0.0 10.0 135.9 164.1 0.cement and asbestos products Base metals and base metal products Machinery and mechanical appliances Transport equipment Optical.4 579.7 261.9 2.8 4.1 0.5 0.2 1996 89.1 1.8 0.6 0.175.6 63.3 177.1 579.1 475.0 198.7 22.0 0. photographic and measuring equipment Miscellaneous manufactured articles Works of arts.2 767.2 614.7 0.9 2.9 1996 1.headgear and clothing accessories Stone.1 365.5 0.7 0.3 0. antiques and special transactions TOTAL Table 21B.0 36.8 80.5 134.4 162.1 63.1 0.3 519.051.9 1.9 157.2 0.2 41.0 0.930.7 2.6 0.6 562.0 1.4 5.6 2.vegetables.6 536.1 0.0 0.1 132.2 0.334.1 202.8 111.Table 21A.5 0.4 12.6 Share of Imports in 1999 in % 2.1 11.4 11.tea &spices Vegetables fats and oil Prepared foodstuffs Mineral Products Products of chemical industries Plastics and rubber products Raw hides and skins Wood and wood products Woodpulp products Textiles Footwear.1 695.4 113.coffee.7 328.2 626.2 256.9 83.2 335.4 3.6 574.1 0.7 98.945.5 111.8 0.2 176.7 0.4 0.0 0.0 41.9 0.7 61.fruits.0 6.1 36.0 235.4 132.6 0.8 207.2 3.0 6.5 1.0 0.4 106.0 78.0 0.2 1.0 0.0 11.2 1997 1998 1999 122.9 403.2 82.0 3.3 297. photographic and measuring equipment Miscellaneous manufactured articles Products of chemical industries Works of art.0 0.5 474.0 1.8 63.9 2.9 57.1 1.0 0.338.3 76.0 5.7 81.2 2.6 119.1 0.4 161.8 355.1 44.0 1.4 0.8 0.786.0 RMA.1 51.2 421.0 2.5 3.0 0.6 16.1 0.5 271.2 214.6 388.0 4.5 177.0 2.1 13.2 6.5 396.630.2 235.5 94.8 1.5 318.antiques.8 364.5 18. and special transactions TOTAL Source: Department of Revenue & Customs.6 1.5 0.6 117.8 3.9 697.0 2. Millions of Ngultrum SL.5 0.1 458.0 139.9 42.0 0.9 0.9 83.6 104.4 614.8 267.7 100.cement and asbestos products Precious or semi-precious metal products Base metals and base metal products Machinery and mechanical appliances Transport equipment Optical.0 6.0 5.2 255.No.5 45.5 3.896.0 51.0 13.3 0.4 3. plaster.1 241.4 508.5 346.2 4.094.nuts.8 66.6 50.5 1.041. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Composition of Trade with India (Imports) ITEMS Animal Products Cereals.453.1 520.5 1.8 0.5 0.5 700.2 22.9 1.6 0.691.078.4 1.8 6.620.0 2.8 0.8 295.4 88.2 565.0 100.1 306.9 412.6 0.4 0.1 0.7 213.3 3.2 0.3 2.018.8 224.2 0.1 206.fruits.3 271.7 0.coffee.0 0.3 6.5 147.6 86.6 612.4 24.1 271.4 3.2 28.5 0.1 198.1 18.9 0.0 68.0 59.6 4.0 362.8 0.0 54.1 28.6 28.9 11.4 425.2 237.0 0.7 0.1 462.5 154.7 16.4 6.0 0.plaster.6 283.5 102.1 1.7 14.227.0 0.5 0.nuts.8 222.9 171.4 111.tea & spices Vegetables fats & oil Prepared foodstuffs Mineral products Electricity Plastic and rubber products Raw hides & skins Wood and wood products Woodpulp products Textiles Footwear.0 359.0 3.5 3.4 297. Millions of Ngultrum SL.4 2.7 0.8 3.0 721.0 100.1 1.4 18.7 0.0 0.8 43.5 72.3 0.0 4.6 31.3 134.1 151.2 251.5 0.4 108.0 5.5 0.4 14.4 3.0 440.6 840.8 341.1 0.4 298. headgear and clothing accessories Stone.0 193.7 9.0 0.9 146.0 240.9 136.No.7 537.0 120.3 533.7 59.7 14.0 239.7 127.2 Share of Exports in 1999 in % 0.1 25.3 0.6 157.3 323.3 110.1 0.4 0.5 0.2 747.3 68.4 204.8 1.7 91.6 68.

3 1.1 62.8 79.0 204.fruits.0 0.seeds Vegetable fats and oil Whiskies and processed food Mineral oil and fuel Products of chemical industries Medicines and pharmaceuticals Photographic film and materials Plastic and rubber products Wood products Woodpulp products Textiles Machinery.7 63.4 1.8 0.3 100.7 0.8 6.4 7.1 1.0 18.8 3.1 0.5 0.0 0.2 837.0 3.6 0.1 1.9 21.7 1997 1998 2.0 0.0 15.3 10.6 13.cereals.6 0.407.2 10.3 16.0 1.244.0 1. Millions of Ngultrum SL.9 1.2 36.5 1.9 7.4 0.7 0.1 0.7 326.4 26.3 23.3 24.1 10.2 0.0 0. footwear.8 9.0 0.2 100.0 0.0 0.0 1.4 1.4 1.3 13.0 0. 1993 1994 1995 1996 0.3 0.9 0.1 6.2 1996 194.3 115.7 56.9 19.3 1.3 0.1 2.1 7.4 33.5 1.No.4 5.7 0. ITEMS 1 Vegetables & fruits 2 Processed food 3 Mineral products 4 Plastic products 5 Photographic film & photographic materials 6 Wood products 7 Woodpulp products 8 Textile 9 Coins 10 Base metals & Base metal Products 11 Machinery 12 Philatelic Products 13 Handicrafts Products 14 Household items & Personal effects TOTAL Source: Department of Revenue & Customs.1 654.4 1999 0.4 19.5 9.5 22.8 1997 167.0 4.0 3.8 17.0 6.8 0.6 1.7 4.6 1.5 20. 65 1993 182.5 6.0 33.1 0.0 1.1 0.6 43.1 0.8 1.9 2.1 6.0 0.5 0.0 232.0 0.629.6 51.0 4.1 5.0 136.3 1.4 8.4 0.0 0.2 0.3 1.3 0.0 1.011.0 0.2 0.3 6.4 85.9 9.4 0.4 11.524.0 1.0 7.9 49.9 0.9 1.2 0.0 3.0 12.1 Share of Imports in 1999 in % 1.4 0.0 21.0 0.8 0.6 0.0 0.9 83.2 5.3 9.0 2.4 5.0 6.0 4.2 0.0 6. No.6 0.1 7.7 4.9 0.8 276.5 7.8 0.2 5.3 13.6 2.6 5.9 0.8 1.0 15.0 1999 176.5 0.1 12.0 2.7 8.6 44.2 0.0 3.0 29.9 1995 156.0 13.2 0.9 7.6 0.coffee.8 0.2 0.0 4.1 5.0 0.0 0.6 0.2 1.7 0.7 10.4 51.1 1998 186.3 0.0 26.4 0.1 4.0 70.0 825.0 2.8 0.3 5.8 Share of Exports in 1999 in % 63.0 9.6 21.0 0.0 33.2 27.0 0.0 0.7 34.0 0.4 0.4 0.0 63.1 0.9 2.9 0.3 3.0 70.9 1.4 0.1 17.0 0.0 66.3 35.0 0.3 1.3 1.1 1.5 0.1 5.667.3 23.0 6.3 27.6 9. Annual Report 2000/2001 .0 0.7 118.9 4.8 3.4 3.6 0.895.6 0.0 280.9 1.1 0.1 60.8 11.5 0.1 7.1 8.0 0.6 1.5 0.0 0.5 0.nuts.0 6.8 2.1 18.0 2.0 0.8 0. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Composition of Trade with Countries Other than India (Imports) ITEMS Animal Products Vegetables.157.4 1994 110.0 Composition of Trade with Countries Other than India (Exports) Millions of Ngultrum SL.8 34.4 3.7 0.8 1.0 815.8 724.5 0. base metals and electronic items Ceramic and melamine products Trekking equipment.4 3.3 0.8 0.4 6.1 0.6 14.8 35.0 0. mechanical appliances.Table 22A. carpets Miscellaneous manufactured articles Precious and semi-precious metals Tobacco and cigarettes Personal effects TOTAL Table 22B.1 0.9 5.8 40.0 270.0 2.7 0.6 88.0 RMA.5 1.989.

Direction of Trade TABLE 23.8 1.5 0.0 70.8 7.0 7.9 601.4 10.4 6.2 1.0 134.6 5.0 89.3 997.6 1.7 1.6 7.3 7. 66 RMA.3 5.0 69.424.3 10.5 73.2 100.4 Share in percent 2.4 36.3 1.7 4.0 261.0 447.8 0.6 4.9 0.1 3.3 100.3 1.7 3.4 2.0 42.7 85.1 100.0 Exports India Bangladesh Others Total Imports India Japan Germany United States United Kingdom Singapore Others Total Source: Revenue & Customs.0 13.1 1.4 102.0 70.8 544.6 9.7 1.8 12.079.991.175.4 1.4 30.8 127.2 11.0 Imports India Japan Germany United States United Kingdom Singapore Others Total 1.3 0.2 19.929.6 35.2 1.2 1.0 93.051.5 396.0 100.7 100.4 31.2 3.082.2 4.3 13.0 90.238.6 0.3 13.0 82.6 40.945.6 0.Table 23.041.630.0 100.8 100.5 8.8 2.1 1.787.9 241.8 14.3 61.7 22.5 1.9 2.0 60.4 100.0 94.5 0.8 1.3 260.0 22.1 67.2 602.2 1.0 115.8 0.0 72.9 0.2 100.419.1 0.289.641.9 677.0 3.945.2 0.6 4.2 1.6 344.4 1.2 100.6 1.9 7.7 1.0 65.6 1.6 100.5 194.3 7.834.3 10.889.6 0.9 86.221.9 4.1 3.9 25.1 100.7 65.0 8.5 4.8 18.055.4 2.4 1.0 84.0 94.8 9.7 0.4 100.525.6 12.4 5.2 0.9 3.6 100.0 3.8 72.6 194.350.5 67.516.0 93.3 0.876.3 2.8 293.172.977.553.7 213.0 74.8 4.0 71.6 2.8 17.1 70.0 264.0 89.1 23.6 7.715.8 38.620.6 841.2 12.0 2.4 52.5 1.274.3 1.227.9 43.0 91.2 209.3 45.1 551.845.1 3.3 360.7 33.1 25.711.745.9 0.6 3.437.5 1.4 12.1 38.7 3.7 7.2 412.5 3.3 2.455.0 3.0 22.0 100.7 9.2 72.2 1.7 2.9 179.0 0.0 82.1 16.4 0.6 4.453.2 2.8 0.5 4.3 0.2 1.1 0.7 8.896.3 192.0 54.3 100.2 100.988.9 6.7 57.3 939.2 398.4 16.9 3.5 4.4 1.5 22.3 4.9 100.1 100.3 4.5 1.2 1.6 7.7 22.5 140.2 1.3 127.0 64.0 201.2 17.3 91.596.6 45.9 5.6 0. Annual Report 2000/2001 .2 100.5 1.8 14.6 77.0 95. DIRECTION OF TRADE Millions of Ngultrum Items Exports India Bangladesh Others Total 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 1.0 410.

Program Dev.4 0.4 0.0 0.3 0. Annual Report 2000/2001 12.3 0.6 4.9 0.8 1.7 1. 1460 BHU 1900 BHU 1899 BHU 1596 BHU 1416 BHU 2533 BHU 3044 BHU 1981/82 to 1993-94 5.7 1.1 0.4 0. Chirang Hill Irrigation Proj.(Japan) Earth Satellite Station Government of Austria Basochu Hydro Power Project No.7 4.Proj.6 2.3 0.4 0.1 3.8 0.3 0.5 1.Proj.0 0.1 1.1 5.5 1.1 1.2 RMA.8 0. Eastern Zone Agri.3 0. T/gang Mongar Area Dev.9 0.Table 24.2 0.1 54.2 0.6 0.2 4.8 0.4 18.3 0. Convertible Currency Loan Disbursements In millions of US Dollar Loan 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 67 Name of the Project World Bank (I DA) Forestry I Forestry II Primary Education Proj.2 3.Edn.9 0.1 0.2 4. Tala Particle Board Bhutan Calcium Carbide BDFC Total (KFAED) EFI C (Australia) Paro Airport Navigation Proj.9 0.3 0.2 0. Total (IFAD) ADB Multi Project I Multi Project II Highland Livestock Dev.7 0.9 10.1 4.6 0.Proj.3 50 BHU 178 BHU 223 BHU 299 BHU 637 BHU 722 BHU 808 BHU 740 BHU 790 BHU 934 BHU 900 BHU 1265 BHU 1035 BHU 1375 BHU 1565 BHU 1566 BHU 1625 BHU 4.7 0.3 0.9 3.3 8.3 7.0 247 259/311 289 409 5.6 0. 1st.5 0.2 1.2 0.8 0.0 0.4 6.5 0. 2nd Eastern Zone Agri.2 0.8 1.7 4.1 5.5 2.0 2. Proj.Proj.7 1.0 2.4 7.8 4.6 14.5 2.3 3.7 1.9 1.3 1.3 0.6 3.6 2.3 10.2 0.9 10.2 0.0 0.1 4.0 5.6 0.4 3.6 3.3 0.9 0.0 0.4 6.5 0.1 4.6 1. Bhutan Calcium Carbide Ltd.0 0.9 1.6 0.3 26.5 0.0 24.6 0.5 0.3 0.8 27.4 0. Mitsui & Co.6 4.6 2. Punakha Wangdi Valley Dev.6 0.7 1.4 2.0 0.3 0.6 30.8 1. Road Mechanization Proj.8 0.2 0.1 0.7 4.7 1.4 0.7 4.9 0.7 0.1 3.4 0.4 .8 0.2 0.5 6.8 5.8 1.7 0.2 3.6 5.3 0.2 Total 0.Finance Corporation Industrial Estate Project East West Highway Maintenance Technical & Voc.2 0.8 1.0 9.2 0.Training Rural Electrification Project Financial Sector Dev. Corporation.1 5.4 1.0 0. Bhutan Dev.6 0.2 0. Technical Assistance Forestry III Second Education Project Rural Access Project Urban Development Project Total (IDA) I FAD Small Farm Dev.5 1.2 0.7 4.1 5.8 1.9 2.0 0.0 1994/95 1995/96 1996/97 1997/98 1998/99 1999/00 2000/01 1. Finance Loan Project Urban Infrastructure improvement Sustainable Rural Electrification Project Health Care Reform Program Road Improvement Project Total (ADB) KFAED Gedu Wood Mfg.5 0.2 3.Proj.1 6.1 0.2 0.8 0.3 1.2 3.2 0.

Table 25.

Foreign Debt Indicators for Convertible Currency Loans

Millions of US Dollars
Items
Debt Outstanding (cumulative)

Period
1989/90
75.0

1990/91
77.8

1991/92
79.5

1992/93
79.9

1993/94
80.3

6.6
4.3
2.3

4.7
2.9
1.8

5.0
3.3
1.7

7.0
5.1
1.9

6.5
4.7
1.8

6.3
4.7
1.6

35.4

26.9

34.3

30.8

33.3

12.4

10.5

11.5

8.5

23.0

16.4

22.8

29.3

30.1

38.5

Debt Service Payments
Principal
Interest
Debt Service Ratio
(in percent)
Interest Payments/Convertible
Currency Exports of Goods and
Services.
Principal Repayments/ Convertible
Currency Exports of Goods and
Services.
Debt Outstanding/GDP
( in percent)

68

1994/95 19959/96
80.9
79.3

1996/97
83.2

1997/98
89.6

1998/99 1999/00(p)
93.0
98.7

9.0
7.1
1.8

6.1
4.4
1.7

5.8
4.7
1.1

4.8
3.8
1.0

3.6
2.6
0.9

31.8

37.6

28.1

20.7

16.7

11.8

9.1

8.3

7.5

7.7

4.0

3.4

3.1

22.3

24.2

23.5

30.1

20.4

16.8

13.3

8.7

35.9

36.0

31.2

25.9

23.5

23.2

22.7

22.4

RMA. Annual Report 2000/2001

Table 26.

Indian Rupee Debt Indicators

Millions of Indian Rupees
Items
Debt outstanding
Chukha Hydel Project
Dungsam Cement Project
Amex Bank
Citibank
GOI Credit Line
SBI Overdraft
Tala Hydel Project
Kurichu Hydel Project
Debt Service Payment
Principal
Interest
Debt Service Ratios
(in percent)
Interest payments/export of
goods & services
Principal repayments/exports
of goods & services
Debt outstanding/GDP
(in percent)

69

Period
1989/90 1990/91 1991/92 1992/93 1993/94 1994/95 1995/96 1996/97 1997/98 1998/99 1999/00(p)
986.9
983.6
3.3

986.2
983.6
2.6

1271.5
983.6
1.9

1784.0
1340.0
1.2
95.0

1841.6
1263.7
0.5

1734.8
1171.1
0.0

1256.7
1078.6
-

1243.8
993.8

1715.5
875.5

2684.0
787.5

3277.0
700.5

100.0
247.8

250.0
327.5

250.0
313.7

178.2

250.0

250.0
240.0
350.0

1230.5
666.0

1470.5
1106.0

1.0
0.7
0.3

0.9
0.7
0.2

6.8
0.7
6.1

232.7
191.7
40.9

329.5
95.7
233.8

203.5
14.3
189.3

556.4
385.5
170.9

151.4
13.9
137.5

159.1
94.3
64.9

394.8
337.6
57.3

125.8
87.5
38.3

0.1
0.0

0.1
0.0

0.4
0.4

13.5
2.4

16.4
11.6

8.9
8.3

19.5
6.0

4.4
4.0

3.5
1.4

8.4
1.2

2.3
0.7

0.1

0.1

0.0

11.1

4.8

0.6

13.5

0.4

2.1

7.2

1.6

22.9

20.3

23.8

28.9

26.3

21.3

12.0

9.8

11.6

15.4

17.0

RMA. Annual Report 2000/2001

Table 27.

The Royal Securities Exchange of Bhutan, Information on Listed Companies
Company*/
year of

Year

Listing

70

Paid Up

No.of

Market

Market

Profits

Reserves

Book

Earnings

PE

Dividend

Dividend

Return

Capital

shareholders

Price (Nu)

Capitalization

Nu. in

Nu. in

Value

Per Share

Ratio

(%)

Yield

on Capital

Nu.in Mill.

Mill.

Mill.

Nu.

Nu.

(%)

(ROC)

Nu.in Mill

High

Low

BCCL

1994

100.0

277

2,000

1,700

200.0

56.7

62.3

1,599.7

566.7

3.5

25.0

1.6

0.3

1993

1995

100.0

277

2,000

1,700

200.0

102.2

145.9

2,447.1

1,022.4

2.0

30.0

1.2

0.4

1996

100.0

272

2,500

2,000

250.0

132.2

241.7

3,417.4

1,321.6

1.9

35.0

1.0

0.4

1997

100.0

268

3,000

3,000

300.0

120.8

262.9

3,629.2

1,208.4

2.5

101.0

2.8

0.3

1998

100.0

267

3,750

3,100

375.0

126.2

204.4

3,403.7

1,262.2

3.0

150.0

4.4

0.4

1999

100.0

267

3,750

3,750

375.0

100.5

240.8

3,407.6

1,004.6

3.7

100.0

2.9

2000

100.0

266

4,001

4,001

400.1

43.4

283.7

3,836.5

433.6

9.2

RICB

1994

12.0

205

1,000

1,000

12.0

10.7

20.7

2,725.8

890.0

1.1

20.0

0.7

0.3

1993

1995

12.0

205

1,000

1,000

12.0

14.0

33.1

3,761.7

1,170.0

0.9

30.0

0.8

0.3

1996

24.0

205

2,500

2,500

60.0

15.7

40.2

2,674.6

652.0

3.8

15.0

0.6

0.2

1997

24.0

205

2,500

2,500

60.0

21.7

55.9

3,329.2

905.0

2.8

25.0

0.8

0.3

1998

24.0

200

3,700

2,800

88.8

22.9

133.0

6,540.0

955.4

3.9

40.0

6.1

0.2

1999

24.0

260

3,700

3,700

88.8

24.2

143.1

6,963.3

1,009.6

3.7

30.0

0.4

0.1

2000

48.0

2543

4,702

2,350

196.8

21.9

69.6

2,449.0

455.2

9.0

15.0

0.6

0.2

PCAL

1994

200.0

602

-

200.0

63.9

102.0

1,509.9

319.3

-

15.0

1.0

0.2

1993

1995

200.0

851

2,000

1,000

453.3

88.4

161.0

1,710.5

390.0

5.1

20.0

1.2

0.2

1996

226.7

901

2,000

2,000

453.3

30.0

163.8

1,722.8

132.4

15.1

12.0

0.7

0.1

1997

226.7

901

2,500

2,000

566.7

30.7

164.0

1,723.4

135.3

18.5

13.5

0.8

0.1

1998

226.7

835

3,000

2,500

680.0

89.1

185.0

1,816.4

393.0

7.6

30.0

1.7

0.2

1999

226.7

1630

3,000

1,725

680.0

166.0

260.4

2,148.9

732.5

4.1

40.0

1.9

0.3

2000

226.7

1630

4,500

3,000

906.7

170.5

317.6

2,400.9

752.1

6.0

50.0

2.1

BFAL

1995

150.0

56

120

100

180.0

31.3

-

-

20.9

5.8

1995

1996

150.0

56

120

100

180.0

60.9

271.9

281.3

40.6

3.0

15.0

5.3

1997

150.0

56

120

100

180.0

55.0

304.4

302.9

36.7

3.3

10.0

3.3

1998

150.0

48

120

100

180.0

(14.1)

273.8

282.5

(9.4)

(12.8)

1999

150.0

44

130

120

195.0

50.3

323.1

315.4

33.6

3.9

2000

150.0

42

135

135

202.5

0.7

293.8

295.8

0.4

306.8

BBPL

1994

101.4

602

100

100

101.4

17.2

13.4

113.2

17.0

5.9

15.0

13.3

0.2

1993

1995

101.4

602

100

100

101.4

36.6

36.9

136.3

36.1

2.8

18.0

13.2

0.3

1996

101.4

474

100

100

101.4

19.9

38.5

137.9

19.6

5.1

18.0

13.1

0.1

1997

101.4

474

100

100

101.4

23.9

44.1

143.5

23.6

4.3

18.0

12.6

0.2

1998

101.4

475

106

100

107.5

14.7

48.9

148.2

14.5

7.3

10.0

6.1

1999

101.4

489

106

100

106.5

(36.7)

12.0

111.9

(36.2)

(2.9)

-

(6.7)

(15.4)

-

0.3
0.1

-

-

-

0.3
0.1
0.1

20.0

-

(0.0)
6.3

-

0.1
-

-

0.1
(0.3)

2000

140.0

489

103

103

144.2

(9.4)

2.7

101.9

BTCL

1994

20.9

84

1,060

1,000

22.2

2.4

5.1

1,245.5

115.0

9.2

-

1994

1995

20.9

84

1,060

1,000

20.9

2.4

7.5

1,359.6

111.0

9.5

-

1996

20.9

88

1,000

1,000

20.9

1.7

8.9

1,425.5

79.8

12.2

-

1997

20.9

87

1,050

1,000

22.0

3.3

9.3

1,445.1

155.7

6.7

15.0

1.0

1998

20.9

87

1,000

1,000

20.9

3.6

9.2

1,437.9

171.4

5.8

15.0

1.0

1999

20.9

89

1,050

1,050

22.0

4.0

12.8

1,609.5

192.9

5.4

-

-

0.1

2000

20.9

89

1,050

1,050

22.0

4.9

16.9

1,806.1

233.0

4.6

-

-

0.1

10.0

(0.1)
0.8

-

0.1
0.1

-

0.1
0.1
0.1

RMA. Annual Report 2000/2001

1) 1995 1997 3.9 5.1 13.5 DSCL 1998 6.0 (42.9 25.0 1.6 3.8 54 100 100 10.0) - 100.2 234.8 1997 1998 10.0 0.6) (3.8 59 100 100 3.0 11.5 429 225 165 130.9) (0.362.3 80 100 100 4. Company*/ year of Year Listing Paid Up No.8 171. PCAL.5 407 250 190 148.8 (1.9 33.8) - - 2000 4.3 2000 20.5) - 100.BTCL. 5-Div.8 2000 59.3 (1.0 28.9 5.0 - - 0. Nu.6 30.0 18.0 (25. Annual Report 2000/2001 .9 21.1 1995 1998 4. BPCL.in Mill High Low BDL 1994 2.5 89 100 100 2.5 96 100 100 5.8 0.6) - 100.5 1998 1999 10.9) (6.9) - - (0.0 4.201 100 100 10.5 96 100 100 2..8 - - 0.3 - 100.4) 1994 1995 2.9 8.2 6.1) - 100.2 100.9 24.of shares. BBPL.0 80.0 (58..5 (1.8 1.4 428.in Mill.9) - - - 100.4) - - (0.0) (2. Mill.4 3. DSCL.State Trading Corporation of Bhutan.1 35.5 173.3) - 100.1 128.7) - 100.Bhutan Ferro Alloys Ltd.4 291.9 0.5 0.3 1999 59.2 176.9 0.7 9.9 122.6 0.201 100 100 6.0 17.6) 1996 2.2 101. Yield = Div X 100/ Book value per share (*) BCCL. (%) (RO C) Nu.2 212.5 (1.Bhutan Board Products Ltd.2 265.5 88 100 100 2.Penden Cement Authority Ltd.0 50. 71 RMA.2 1999 12.3 0.0 14.0) - - (0.0 25.8 8.4 25.3 0.0 (10.Royal Insurance Corporation of Bhutan.5 407 700 450 416.2 - 1.1 15.7 - 2.5 9.1 0.4) - 100.1 - - 1996 1997 59.5 102.0 (35.0 0.. in Nu.3 9.7) (3.5 Source: Royal Securities Exchange of Bhutan Total M arket Capitalization : (1.8 115.4) - 0.7) - - (0.5 411 225 196 133.8 135.1) - 100.1 1.8 35.5) - 100.9 - - - - - (0.3 1.1 50.9 0.Druk Petroleum Corporation Ltd.5 1999 20..0 132 100 100 20.0 (29.2 59.9 195.1 1.0 12.9 78 100 100 24.4 25.3 59 100 100 3.5 - - - - - - 1999 2.6 0.4 14.0 - - - - DSM L 1996 3.4 20.0 0.2 1998 59..7 0.0 13.6 2000 24.3) 1999 4.Druk Stones and M ining Ltd..5 88 100 100 2.0 29.8 7.4 32.3 (1. T HE ROY AL SECURIT IES EXCHANG E OF BHUT AN.3 3.1 71.3 (0.Bhutan Tourism Corporation Ltd.1 132.5 89 100 100 2.0 - - - - DPCL 1997 4.8 (0.8) (9.of Market Market Profits Reserves Book Earnings PE Dividend Dividend Return Capital shareholders Price (Nu) Capitalization Nu.3 79 100 100 4.8 2. Mill.1) - - (0.8 0.6) (2.3) 1999 3.T ABLE 27. The figure for M arket Capitalization has been revised. STCB.8 64 100 100 3.91 Formula used :1-Book Value = Capital + Reserves/ No. in Value Per Share Ratio (%) Yield on Capital Nu.1 40.5 (76.5 - - 100.5 406 240 220 142.7 243. 4-Return on Capital = Net Income/ (Equity + Reserve).3 121.201 100 100 10.8) - (0.1 0. BNB..8 12.4) - - (0.2 265.0 20.0) (1.1 140.3 ST CB 1997 20.3) - - 2000 2.8 (0.5 0.of Shares.0 (19.8 98.8 54 100 100 10.3 80 100 100 4.8 64 100 100 3.0 (16.8 0.8 38.2) BNB 1996 59. DSM L.8 14.5 2000 10.0 (194.8 50.4 4.3 (1.4 0.3) - - (0.5 80.6 244.0 14.1 17. BFAL.8 15.0 133 100 100 20.7) (5.5 6.3 305.9 42.Bhutan National Bank.Bhutan Polythene Company Ltd.4 147.5 78 100 100 12.3 0.5 67..0 - - - - - 1998 2.7 79.0 8.Bhutan Carbide & Chemicals Ltd.0) (1.0 0.8 47.3 40.4) - 100. RICB.0 17.5 96 100 100 2.1) - - 1997 2. CONT INUED.7 BPCL 1997 10.0 133 130 130 26. INFORM AT ION ON LIST ED COM PANIES.0 11.1 1997 1998 20.0 (33.4) (3. Nu..0) - - (0.9 148.1 8.3 0.3) 1998 3.3 59 100 100 3. DPCL.8 47. 2-EPS = Net Profit/No.0 132 100 100 20.0 2.0 11.6) (1.0 18.6 50. BDL-Bhutan Dairy Ltd.2) 2000 3.5 (2.8 12.3 80 100 100 4. 3-PE = M arket price/ EPS.1 80.0 47.Druk Satair Corporation Ltd.

However. Furthermore. The development of the latter four financial institutions is outlined below.4 million. the SBI held 40% of the Bank's shares.2. Annual Report 2000/2001 . with a reserve fund of Nu. and follow-up on loans through meeting with customers.100 million. At present. From that date onwards.10. the management of the bank was to be handed over to Bhutanese nationals.407. a substantial increase from Nu. the Bank entered into a series of arrangements with foreign banks. Right from the inception. After a long and successful collaboration with the State Bank of India. Bank of Bhutan (BOB) The Bank of Bhutan. the Royal Insurance Corporation of Bhutan and the Bhutan Development Finance Corporation. two commercial banks. Under the arrangement. the Bank of Bhutan and the Bhutan National Bank. the branch expansion program was given the top priority and presently there are 25 branches and two extension counters. the banks' capital stood at Nu. a new agreement was made on 27th June 1997. which was established on May 28. As of December 2000.5 million. "Tikchung".4 million. due to the nonconvertibility of our local currency. To solve this problem. the desired level of development did not take place initially. 4. In order to boost the credit. and two non-bank financial Institutions. providing the SBIs' participation in the capital and management of the Bank of Bhutan. and a reserve fund of the same amount. is the oldest and the largest financial institution of the country. In order to improve the banking culture.ANNEX I FINANCIAL INSTITUTIONS The Financial Sector in the narrow sense (excluding the Capital Market) in Bhutan consists of the Royal Monetary Authority of Bhutan. 72 RMA. In order to serve better the country’s growing needs of the banking services. 1968. During 2000. covering 20 districts. the bank’s foreign exchange transactions amounted to Nu. while 60% were held by the ROGB. a collaboration agreement was signed with the State Bank India (SBI) on 7th October 1971. extending the collaboration period till 31st December 2001. deposit mobilization. the Bank had conducted a door-to-door survey in rural areas to introduce the bank's lending and deposit schemes to the rural community in 1986. in 1989 the Bank introduced customer education in the rural areas on Bank's services. the Bank started contributing to the earnings of foreign exchange by financing/facilitating the exports. The Bank was opened with a capital of Nu. while the remainder is held by the SBI. the RGOB holds 80 percent of the banks' shares.2 million in 1999. From 1975 onwards. the BOB reduced its interest rate on selected loan schemes from 1st July 2000.

With regard to deposits.2 percent. it started functioning as an independent financial institution to promote and mobilize small domestic savings and channel capital to the productive sectors. financial institutions hold 4. published by the Royal Securities Exchange of Bhutan on listed companies (2000 Annual Report). the public holds 28.7 million. as a Division of the Royal Insurance Corporation of Bhutan (RICB). jointly hold 40 percent of the share capital. In 1992. percent as compared to 14. The BNB reduced its lending rate from 16 percent to 15 percent on the overdraft facility and business loans with effect from April 01. 2000 has been another successful year for the bank in terms of asset growth.ANNEX I 2000 marked another successful year. 208 clerks and 143 subordinates. 22.5 million through a public offer in July 1996. the BNB has now 35. ADB and the Citibank. the Government holds only 27 percent of its ordinary shares.4 percent of total advances by the two banks. for the first time it has been over-taken by the four year old Bhutan National Bank (see below). Annual Report 2000/2001 .42. the Royal Government. jointly owned by the Royal Government and the RICB. 6 percent of the total deposits in the country and its loan portfolio accounts for 44.6 million. and the foreign investors. 2001.59. with 429 individuals subscribing to its shares. comprising 87 officers. in general. with its 33 years in business ending by earning a profit before tax of Nu.5 to Nu. Loans and advances showed some improvement over the previous year. recording a growth of about 16 percent. with the assistance from the ADB. The BOB's total staff stood at 438. converted the UTB to Bhutan National Bank on December 5. profitability. While the profit has improved by Nu.6 percent. and market response. These developments indeed reflect an expansion of banking culture. Total assets grew by about 36 percent. With the aim to deepen the financial system for generating broader and competitive banking services. Since 1998-89. The BNB's assets as a percentage of total assets of the two commercial banks have risen to 30. 122. Bhutan National Bank (BNB) In 1980. 1996.2 percent in 1997. in particular. The new bank's equity capital base was increased from Nu.5. Judging by the key financial indicators. compared to the previous year. and the emergence of competition in the financial sector. the BNB shares are the most active securities traded in our emerging Capital Market and its price appreciated by a record high of 15 times to date. As evident from the composition 73 RMA. the Unit Trust of Bhutan (UTB) was established. of which 40 percent continue to be in the form of Indian Rupee investments abroad.

e.1 million.. representing over 52 percent of the Bank's total interest income.144 million. The bank closed its books in 2000 with a profit before tax of Nu. the highest profit in its four-year history.ANNEX I of assets or investments. 74 RMA.150. Annual Report 2000/2001 . i. The BNB now has a total staff strength of 144. much of the bank's profit for the year under review came from the fixed-term rupee deposits in India. Nu.

its share in the EDP is Nu. and commercial projects. to primarily assist the private sector by providing financial and technical assistance for industrial. It is funded by international multilateral agencies and is not a deposit-taking institution.ANNEX I Bhutan Development Finance Corporation (BDFC) The BDFC was established in 1988 with the assistance from the Asian Development Bank. the BDFC has 21 offices in the country.20 million. In October 1998. the BDFC joined the Entrepreneurial Development Program (EDP). while agricultural lending. the BOB. HELVETAS. covering all the districts and has recently introduced a mobile banking facility at the grassroots level. The principal goal is to assist small farmers to increase production and income and ultimately improve their quality of living. along with all assets and staff of the former Agricultural Credit Division of the RMA. the BDFC issued Nu. Annual Report 2000/2001 . The ongoing UNCDF/IFAD Agricultural Credit Programme. is the main responsibility of the BDFC. The BDFC's total staff stood at 131. At present. To finance the small entrepreneurs. particularly micro-financing.50 million worth of 10-year Rural Credit Bonds for the purpose of providing micro-credit to rural borrowers. The industrial lending activities dominate the bank's profitability. and ADB. agricultural. The main sources of funds for the BDFC are external concessional loans and grants from international agencies such as the UNCDF. KFAED. the RICB. SDC. 75 RMA. The Government is contributing eighty-seven percent of the BDFC's paid-up capital and the remaining thirteen percent are shared equally by the other three financial institutions. 32 in the Industrial Lending Department and 99 in the Agricultural Lending Department. and the RMA. with equity participation of the RGOB. was transferred to the BDFC in March 1988. which was initially implemented by the RMA.

the Credit and Investment Department was set up to act as an investment body for all funds. the Corporation was mandated to underwrite all types of insurance business emanating from Bhutan and also to finance various commercial undertakings and development projects. the house construction and transportation activities in the country were taken up by the Private Sector on a large scale. the auspicious occasion of our King's 25th Coronation Jubilee. it helped to solve the long-standing problem of excess liquidity and enabled the corporation to concentrate on its core business. The Corporation started with a paid up capital of Nu.1. General Insurance. the RICB had also invested a considerable amount in the development of industrial units and trading activities. was transferred to the National Pension and Provident Fund Bureau from April 2000. The Company is incorporated under the Companies Act of Bhutan in 1989 and registered under the Financial Institutions Act of Bhutan 1992. 2000). the RICB initiated a Contractors Revolving Credit Scheme and a Preferential Financing Scheme (January 7. which finances private (light) vehicles. Apart from existing loan schemes. Beside. 1997: Diamond. In this connection. Rural Housing Insurance. On 2nd June 1999. the RICB launched two new policies namely the "Money-back Policy" and the "Double Cover Endowment Plan". The Government Employees Provident Fund (GEPF). which was managed by RICB since 1976.2 billion (accounting for over 80 percent of the RICB's assets). Instead.00 million in 1975. Annual Report 2000/2001 . when the Company had to part with assets worth Nu. Under the Royal Charter. but also contributed towards the country's economic development by way of financing. Almost 75% of the houses in Thimphu. besides Real Estate and Credit Cards. housing and transportation loans. With the investment of these funds in the economy. and Silver. The services provided by the RICB under Insurance and Finance are Life Insurance. and the Group Insurance Cum Saving Scheme. Gold.ANNEX I Royal Insurance Corporation of Bhutan (RICB) The RICB commenced its operations as the first and only Insurance entity in 1975 under the Royal Charter with 61% Government participation and 39% held by the public. The separation of the GEPF did not have any adverse effect on the overall performance of the RICB. Right from its inception. Phuntsholing and other towns were financed by the RICB.1.48 million as of December 2000. The Popular Preferential Financing Scheme. The main line of business of the RICB can be categorized into Insurance and Finance. The RICB pioneered the use of credit cards by launching a three-category credit card on17th Dec. has been temporarily suspended to clear the 76 RMA. which has been increased to Nu. the RICB not only met the insurance needs of the country.

while others were from India. 77 RMA. the RICB has financed the purchase of 698 vehicles. Annual Report 2000/2001 . Since January 2000. of which only 24 were imported from third countries.ANNEX I backlog of pending orders and also to allay the explosion of vehicle registrations in the country.

ANNEX I 78 RMA. Annual Report 2000/2001 .

Annual Report 2000/2001 .ANNEX I 79 RMA.

ANNEX I 80 RMA. Annual Report 2000/2001 .

Annual Report 2000/2001 .ANNEX I 81 RMA.

000 MW and by the end of the 8th Five-Year Plan. and Sinchekha. Tala will be capable of generating 4865 GWh (million units) of energy in an average year and provide 1020 MW of peaking power throughout the year. more than double of Chukha’s present power generation capacity. Wangkha. The first hydroelectric plant in Bhutan was built in the capital Thimphu. Over 80 km of land have been used in the construction of the Tala Project and settlement colonies have been set up at Gedu. Annual domestic consumption in Bhutan has been growing at an average rate of 9. Upon completion. The Tala Hydroelectric Project (1020 MW) The Tala Project was embarked upon following the successful implementation of the Chukha Hydropower Project. inclusive of the first two years of infrastructure development. 82 RMA.29. Bhutan will have 1485 MW of hydropower capacity and about 5 percent of its total hydropower potential will have been developed. Electricity exports continue to be the largest contributor to total revenue earnings in the country. It was approved at the estimated cost of Nu. Tala. Domestic demand for electricity is now over 90MW per annum. The revised envisaged cost is now Nu.212 million (September 1997 price level) and the expected date of completion is June 30. By 2005.14. when the Tala and Basochu Lower Stage Projects are commissioned. 2005.4 percent of that potential will have been utilized. This industry will also contribute about 60 percent of total annual revenue generation for the country. only about 1. and more than 30 percent of Bhutanese households have access to electricity.080 million (1993 price level) and was scheduled to be completed in 8 years. the Project is envisaged to utilise 860 metres fall available by about 22 km length of tunnels beginning at the Head Race Tunnel from down stream of the Chukha Power House up to the Tala Power House. The contract for the Tala Project was signed on March 5. 1996.5 percent over the past 5 years. producing 360KW of electricity.ANNEX III POWER SECTOR Bhutan’s hydropower potential is estimated to be over 30. Annual Report 2000/2001 . and works on the project began in October of 1998. When the Chukha hydropower project (336MW) was commissioned in 1986. Bhutan began exporting over 90 percent of generated electricity. For hydropower purposes itself.

/Nu. The second amount of ATS 44. The initial disbursement of funds from the Government of Austria amounted to ATS 350 million. Annual Report 2000/2001 ./Nu. The Basochu Hydropower Project is located in Wangdue Phodrang and taps the Basochu stream above the Basochu waterfall using 2. the repayment period of which was 20 years (grace period of 10 years).2 MW) His Majesty the King identified the Basochu as a potential energy source in the early 1970’s. The first phase (3 units of 45 MW) was completed in September this year.70 per KWh will earn a gross revenue of Nu.560 million. With the commissioning of this project. The expected time of commissioning of the Basochu Project is in early 2002. The initial estimated cost of the Project was Rs. like the Tala Project. The second phase (15 MW) is expected to be completed by the end of December next year. 1995. is being constructed with the assistance of the Government of India. increased power supply to western Bhutan is predicted and thus it is very likely that excess power produced by 83 RMA. it was revised in June 2000 to Rs.ANNEX III Kurichhu Project (60 MW) The Kurichhu Project. but it was only in 1989 that the Austrian Government took an interest in the project and financed the Pre-Feasibility Study.6 km length of a Head Race Tunnel and a 1. An additional budget of ATS 73. therefore. is being used for the project.74. However. 1995. 0.40 million from the Royal Government of Bhutan. of which ATS 180 million were the Grant component and ATS 170 million were a Soft Loan.1 million. Expected average annual power generation is 107 GWh. the Financing Agreement was signed between the RGOB and Government of Austria.9 million was approved at the Steering Committee Meeting held in Thimphu on July 4. 1994.368 km length penstock.9 million.5. and construction commenced on September 27. The contract between the two Governments was signed on February 18. stands at ATS 229 million. which at the present domestic selling price of Nu.060 million with an additional contribution of Rs. In 1993 and 1994 a Preliminary Design of the Project was carried out by a team of Austrian engineers. The total amount of loan finance from the GOA. half of which is a soft loan from the Government of Austria. Financial assistance from the Government of India is provided in the form of 60 percent Grant and 40 percent Loan. and on April 14. 2001. Upper Stage Basochu Project (22.2./Nu.

Annual Report 2000/2001 .ANNEX III Chukha will be free for export. 84 RMA.

Annual Report 2000/2001 .ANNEX III 85 RMA.

ANNEX III I. Annual Report 2000/2001 . 86 Balance Sheets RMA.

ANNEX III 87 RMA. Annual Report 2000/2001 .

ANNEX III 88 RMA. Annual Report 2000/2001 .

Income and Expenditure Statement 89 RMA.II. Annual Report 2000/2001 .

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