NAC's loan for four aircraft rises from Rs 34 billion to nearly Rs 56 billion

The loan taken by Nepal Airlines Corporation (NAC) to purchase four aircraft has reached approximately Rs 55.92 billion when principal and interest are combined.

According to data from the Office of the Auditor General, the initial principal amount for which the government stood as guarantor for these aircraft purchases was about Rs 34 billion.

The corporation had taken loans from the Employees Provident Fund and the Citizen Investment Trust to purchase two wide-body and two narrow-body aircraft. For the narrow-body aircraft, the Provident Fund had initially provided about Rs 10 billion.

Subsequently, both the Provident Fund and the Citizen Investment Trust each lent about Rs 12 billion for the purchase of the wide-body aircraft.

The office said that by the end of fiscal year 2082/83, the outstanding principal had risen to about Rs 44.68 billion. Interest accumulated over the same period stood at about Rs 11.24 billion.

As a result, the corporation's total liability has increased by nearly Rs 22 billion compared to the original loan amount.