This tale interestingly told in Kuensel issue of 8/8/15 ( page 3) intrigued my limited legal knowledge. I felt Gem Tshering the Guarantor should be held liable for loan default and Bank officials for reckless financial irresponsibility along with Penjor who availed the initial loan. The 3 parties in their personal capacities need to make good the full loan repayment to BNB.
Bank money is public money and loan cannot be disbursed recklessly. And a guarantor has to make good a guarantee. The Loanee has responsibility to pay back loan but Bank officials are answerable for knowingly saddling an overburdened donkey with more load.
I humbly submit it as a food for thoughts to professional legal circles and financial Executives.The Bank Management and Guarantors at times drives a loan status from bad to worse by wilfully participating in loan amount enhancement. Such practice is crime in the making. And therefore, liabilities thereof made to be borne by such parties.