Nepal Airlines, also known as the Nepal Air Services Corporation, is facing a serious financial crisis as high interest costs on its loans add to outstanding dues it is yet to collect from the government.
The corporation pays 9.25 percent interest on a loan from the Employees Provident Fund and 10.5 percent on a loan from the Citizen Investment Trust. It is still owed Rs 137.5 million by the government.
Financial pressure on Nepal Airlines
The loan interest rates and unpaid dues were discussed at a meeting of the Federal Parliament’s International Relations and Tourism Committee held in Kathmandu on Monday.
The outstanding amount is equivalent to 13 crore 75 lakh rupees. The committee meeting addressed the financial burden facing the national carrier as it continues to pay interest on its loans while awaiting the money owed to it.
