Nepal Airlines is struggling to repay a credit loan it took to finance the acquisition of two A330-200s and will ask for the government’s assistance, The Himalayan Times has disclosed.
The carrier took away an NPR24 billion rupee ( USD215 million ) loan from the Employees Provident Fund ( EPF ) and Citizen Investment Trust ( CIT ) to finance the acquisition of the widebody Airbus aircraft. The loan is repayable in 60 installments of around NPR804 million rupees ( USD7.2 million ) each.
Based on the reports, the carrier has repaid the first payment but only around NPR100 million rupees (USD900, 000 ) of the second one which is now overdue. It also lacks the cash to meet its further commitments.
“As we can’t pay the loan on our own, we’ve sought financial support from Ministry of Tradition, Tourism, and Civil Aviation. A high-level conversation is underway regarding the matter,” an airline representative declared.
In the meantime, The Kathmandu Post has reported that Nepal Airlines plans to resume Y12 operations at the end of July 2019.