By Lobsang Tenchoe
DHARAMSALA, Jan 17: The President of Central Tibetan Administration(CTA) Dr Lobsang Sangay today inaugurated Gangjong Development Finance Private Ltd., a non-banking financial corporation (NBFC) of the CTA’s Finance Department.
President Dr Lobsang Sangay inaugurated the Gangjong Development Finance Private Ltd. and chaired a press conference earlier today which was attended by the corporation’s three board of directors, Finance Kalon(Minister) Karma Yeshi, Chief Planning Officer Dr Kunchok Tsundue and Alok Prasad, a renowned MFin expert, along with the Secretary of Finance Department, Trinley Gyatso.
Addressing the press conference, President Sangay described CTA’s NBFC as one of the most strategic programmes conceived and designed to drive forward the Kashag’s 5-50 policy.
“Gangjong Development Finance Private Ltd. will address the critical need of financial literacy and assist Tibetan-owned micro, small and medium enterprises (MSME), and education loans,” Sikyong Sangay said.
CTA’s Finance department has already rolled out a 100-million rupees loan scheme under the initiative last year for Tibetan sweater traders at a meagre interest rate of 3%.
“The scheme was highly successful. At least 90% of the loans have been already recovered,” Sikyong Sangay disclosed.
Following the success of the loan scheme for the Tibetan sweater seller, CTA now plans to expand the next scheme to 200 million rupees to cover financial needs of not just Tibetan sweater sellers, but also micro, small and medium enterprises (MSME) owned by Tibetans as well as education loans.
“The details of the new scheme would be announced following an in-depth assessment by the board members ,” President Sangay concluded.
Gangjong Development Finance Private Ltd has been formally registered as a first step towards becoming a full-fledged bank and the CTA hopes that it will soon become a normal commercial bank.
“Gangjong Development Finance Private Ltd. will strive to strengthen Tibetan economy and transform it into an economically self-reliant community,” Finance Kalon Karma Yeshi said.
The only difference between an NBFC and a normal bank is that while a normal bank can accept deposits and give withdrawal facilities, the NBFC can only sell its shares.