Nepal Airlines fails to repay installment

Kathmandu: Interest amount for the credit loan taken for buying the wide body airbus 3300 has been added to the capital amount after Nepal Airlines (NA) failed to repay the  installment within the stipulated time.

NA failure to pay installment amount results owing to two grounded wide body airbuses 3300 so far due to NA’s indifference and indecisiveness in fixing the long distance international destination for these two airbuses.

NA had borrowed 24 billion rupees from Citizen Investment Trust and Employees Provident Fund in the presence of the government to buy the two wide body airbuses to start flights for international destinations.

The NA owes 113 million rupees as installment payment every month to Citizen Investment Trust and Employees Provident Fund together.

In three months the NA credit amount becomes due for payment to both the trust and fund amounts to 1 billion 113 million rupees.

However, NA has been able to pay only the first installment after the arrival of the airbus. The NA is likely to bear the additional burden of interest amount which will be added to the capital amount.