Nepal Airlines Pays Loan, Seeks Relief from Interest and Penalties

Nepal Airlines Corporation (NAC) has made a partial payment on the loan it took from the Employees Provident Fund and the Citizen Investment Trust for the procurement of two narrow-body and two wide-body planes for international flights.

According to NAC spokesperson Subash Dangi, the airline paid Rs 530.9 million on April 13. This amount covered the full installment for the two narrow-body planes and a partial payment for the two wide-body planes.

Dangi also mentioned that NAC has paid a total of Rs 7.40 billion in loan installments up to mid-April 2025.

The national flag-carrier has requested both the entities to waive interest on the loan, compound interest, penalties and fines slapped during the time when the COVID-19 pandemic affected its business. It has also asked the institutions to extend the loan repayment period to make it easier for them to pay. Both sides are currently discussing these requests.