NAC clears almost four billion rupees debt in one year

Published On: July 20, 2023 06:28 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, July 20: Nepal Airlines Corporation (NAC) has paid off a substantial debt of almost four billion rupees, including interest and loans, within a single fiscal year. According to Ramesh Paudel, the Corporation's spokesperson, the NAC settled 3.77 billion rupees in loans and interest during the financial year 2022/23.

On July 16, the NAC made a substantial payment of 839.55 million rupees towards the debt obligations incurred while acquiring two narrow-body and two wide-body aircraft. This payment has been directed to the Employee Provident Fund and Citizen Investment Trust, showcasing the Corporation's commitment to meeting its financial responsibilities.

Previously, between June 2022 and April 2023, the Corporation had already disbursed 2.94 billion rupees in principle and interest payments, further reducing its debt burden.

The NAC attributes its ability to clear these debts to improved business expansion and increased income. The Corporation's recent progress has facilitated the settlement of old dues and regular installment payments to the two public lenders.

Furthermore, NAC has taken a proactive approach to upgrade its fleet and enhance service delivery. Utilizing its own resources, the Corporation has expedited the procurement process, acquiring three new aircraft specifically for serving remote areas. This strategic move will not only help balance rental rates but also enable the NAC to play a pivotal role in fulfilling national responsibilities.


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