In a recent announcement, Nepal Airlines Corporation (NAC) reported that it has successfully repaid a total of NPR 6.32 billion (NPR 6,328,597,533) towards its outstanding loans. This repayment primarily relates to the financial obligations incurred for the purchase of two narrow-body and two wide-body aircraft, which were acquired through loans from the Employees’ Provident Fund and the Citizens’ Investment Fund.
According to a statement released by the corporation, NAC made a significant payment of NPR 530.9 million (NPR 530,955,281) on October 16, covering the installment for the two narrow-body aircraft and making a partial payment for the two wide-body aircraft. Ramesh Paudel, the spokesperson for NAC, confirmed this information, highlighting the corporation’s commitment to managing its financial responsibilities effectively.
The impact of the COVID-19 pandemic has adversely affected the operations of the airline, leading to significant financial strain. In light of these challenges, NAC has formally requested both the Employees’ Provident Fund and the Citizens’ Investment Fund to consider providing relief by waiving interest, penalties, and facilitating an increase in the number of installments for loan repayments. This appeal reflects NAC’s efforts to stabilize its financial situation and ensure its continued operations in the aviation sector.
As NAC continues to navigate through these turbulent times, the recent loan repayment marks a crucial step towards financial recovery and operational sustainability. The airline’s ongoing efforts to manage its debts effectively will be vital in restoring confidence among stakeholders and ensuring a stable future in the competitive aviation market.
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