April 15: Nepal Airlines Corporation (NAC) has paid Rs 5.36 billion in principal and interest of the loan taken for the purchase of aircraft. The state-owned airline company paid the amount to the Employees Provident Fund (EPF) and Citizen Investment Trust (CIT).

NAC spokesperson Ramesh Paudel informed New Business Age that the amount was paid between mid-June 2022 and mid-April 2024.

The flag carrier of Nepal took a loan of Rs 34 billion from that the two companies to buy four aircraft (two narrow body and two wide body aircraft) for international flights. The NAC borrowed Rs 12 billion from the CIT and Rs 22 billion from the EPF.

They had given loans to the NAC under the guarantee of the government. The NAC obtained a loan from the Employees Provident Fund in 2015 and from the Citizen Investment Trust in 2017.

The NAC has to repay the loan in 15 years.

The NAC said that it has more than Rs 48 billion in debt obligations including interest on the loans taken from these two companies.