NAC pays Rs 530.9 million to its creditors

KATHMANDU: Nepal Airlines Corporation (NAC) has paid Rs 530.9 million to its creditors towards the interest and installments of loans obtained to procure four aircraft for international flight operation.

NAC obtained loans from the Employees’ Provident Fund and Citizens Investment Trust to purchase two Airbus A320s and two Airbus A330s. Specifically, NAC secured Rs 10 billion from EPF to procure two Airbus A320s, while an additional Rs 25 billion was borrowed from EPF and CIT for the purchase of two Airbus A330s.

According to NAC, the airline has fully paid installments of loans taken to procure Airbus A320 aircraft and has made partial payments towards the interest and installments for the loans associated with the Airbus A330s.

In the previous fiscal year, NAC made a total payment of Rs 3.77 billion towards reducing its outstanding debts.

Meanwhile, NAC is preparing to enhance its domestic flight operations by procuring three Twin Otter aircraft. The national flag carrier plans to mobilize internal resources for the purchase. Minister for Culture, Tourism, and Civil Aviation, Sudan Kiranti, said earlier this week that the procurement process would be initiated within this week.