June 5: The Nepal Airlines Corporation (NAC) is now ready for loan agreement of Rs 24 billion to buy two wide-body Airbuses, with the Citizens Investment Trust (CIT) and Employees Provident Fund (EPF).
The NAC will obtain Rs 12 billion in loans from each fund in which the government will be the guarantor.
Both the institutions will provide Rs four billion each to the corporation in the first phase and the interest rate will be 9 percent.
The agreement is delayed due to the delay in submission of documents regarding the purchase of Airbus asked by the loan providing institutions.
Ram Krishna Pokhrel, Executive Director of CIT informed that though the decision was made earlier to provide the loan amounting to Rs 12 billion to the corporation, the delay in submission of documents has holdup the agreement. “As soon as we are provided with the documents, the loan agreement will be signed,” he said.
However, Rabindra Shrestha, Spokesperson of NAC said that the understanding for loan taking has been already reached, and the loan agreement will be signed as soon as the loan providing organizations call them.
“We have already completed the task of our side and the loan providing organizations might be preparing for the task of their side,” he further said.
NAC has entered into agreement to buy two Airbus aircrafts with an US leasing company AAR Corporation, two years ago. The corporation is buying two 330-200 series wide-body airbuses for Rs 22.63 billion, and the NAC has already sent USD one million as advanced payment.
With the loan agreement, the corporation will send first installment of its payment to AAR Corporation of USA, and it will provide the airbus within 14 months.
Meanwhile, NAC is making international flights with two narrow-body Airbuses and a Boeing. The corporation is planning to operate flights to South Korea, Japan, Australia and London with these aircrafts.
NAC is expecting that after buying the two Airbuses, the company will regain its lost goodwill and market in the international sectors.
