September 19: After the government agrees to act as a guarantor for Nepal Airlines Corporation (NAC), Employees Provident Fund (EPF) and Citizens Investment Trust (CIT) along with various banks have also agreed to provide loans to NAC for purchasing wide-body aircraft. “The institutions have agreed to pledge Rs 25 billion loan,” informed Ram Hari Sharma, spokesperson for NAC. According to him, EPF is committed to extend loan of Rs 25 billion whereas CIT and other private banks have also shown interest to grant the loan. 

“EPF is not the final loan provider. We can also invite tender for loan,” said Shailandra Kansakar, Assistant Spokesperson for NAC. He further said that NAC has many options for loan at present unlike earlier periods.  According to him, NAC might take the loans from all including EPF, CIF and private banks without inviting tender.  

NAC has not specified the rate of interest for loan taking. As per Kansakar, NAC will select bigger loan providing trusts and banks that will provide long term loans at low interest rate.  

EPF has already invested Rs 10 billion on NAC to purchase narrow-body aircraft. EPF said that it is ready to give more loans to NAC due to the government’s guarantee for the loan. However, the EPF correspondent to NAC does not disclose the percentage of interest rate for the loan. 

“NAC is trying finalise the loan procedure within few days,” said spokesperson Sharma. NAC is planning to buy two airbuses of 330-200 series with seating capacity of 260 passengers in a bid to strengthen international flights of the country. 

Sharma informed that NAC is planning to buy the first airbus in a one year and the second one in the next year.  Presently, NAC is operating flights to Dubai of United Arab Emirates (UAE), Doha of Qatar, Kuala Lumpur of Malaysia and Kolkata of India through its Boeing. Similarly, it has also been operating flights to New Delhi, Mumbai and Bangalore in India.