NAC Repays Rs 6.328 Billion in Aircraft Loans, Seeks Leniency on COVID-Related Penalties

Nepal Airlines Corporation (NAC) has made significant progress in clearing its debt, having paid back Rs 6.328 billion to institutional lenders. The loans were initially secured from the Employees Provident Fund (EPF) and Citizen Investment Trust (CIT) for acquiring two narrow-body and two wide-body aircraft for international routes.

The full payments for the narrow-body aircraft have been completed, while Rs 535 million was recently paid towards the wide-body aircraft loan on October 16.

Given the severe impact of COVID-19 on its operations, NAC has asked EPF and CIT for leniency in terms of interest, damages, and penalties for that period. Additionally, NAC has proposed extending the number of loan installments to ease the repayment process.