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NAC Seeks Loan Relief as It Clears Over Rs 530 Million in Aircraft Dues

The national flag carrier has continued repaying its massive aircraft loans despite lingering financial strain from the pandemic, while requesting leniency from lenders.

NN

Nepal Verified News

Sat Oct 18 2025

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Facing heavy financial pressure, Nepal Airlines Corporation (NAC) has cleared Rs 530.95 million in dues to the Employees Provident Fund (EPF) and Citizens Investment Trust (CIT) as of Ashoj 31, 2082 (mid-October 2025), part of its ongoing effort to settle aircraft loan obligations.

 

The recent payment includes full installments for two narrow-body planes and a partial settlement for two wide-body aircraft, both purchased for the airline’s international operations.

 

Under its current management, NAC has so far paid Rs 8.45 billion toward aircraft loan liabilities up to the end of Ashoj 2082.

 

However, the Corporation admitted that the COVID-19 pandemic severely disrupted its business, weakening its repayment capacity. In response, NAC has formally appealed to the EPF and CIT for interest and penalty waivers, along with an extension of the repayment schedule to ease financial burdens.

 

Talks regarding these requests are said to be progressing positively, and the airline expressed confidence that the government and concerned institutions will extend necessary support to help it meet its financial commitments.

    CN
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