NAC in preparation for loan agreement to buy wide body carrier

6th Jun, 2017 | Tourism Mail Crew

KATHMANDU, June 6 : Nepal’s national flag carrier Nepal Airlines is making preparations to seal the loan agreement to purchase two “Wide Body” Air bus.

The NAC is making preparations to acquire 24 Billion rupees as loan from Employee Provident Fund and Citizens Investment Fund. The two bodies will charge the National Carrier with 9% interest over the loan.

Government of Nepal decided to stay as security over providing the loan and both the lenders will be providing loan on 50- 50 % basis. In the preliminary phase the two institutions will give NAC a sum of 8 Billion rupees, 4 billion each.

Though the agreement regarding the loan was made earlier the documentation process is taking long which has resulted in the delay over sealing of the loan agreement.

“The board meeting of Citizens Investment Fund already has passed the decision to provide the loan to NAC but we are yet to receive required documents,” Ram Krishna Pokhrel, Executive Director of Citizens Investment Fund said.

B ut the NAC spokesperson claims that the authority has completed the documentation and is waiting for call from the lenders.

“We have completed the tasks required for the loan agreement. Other party might be completing the procedures. Once we receive call from the lenders we will ink the loan agreement,” Rabindra Shrestha, Spokesperson of Nepal Airlines Corporation said.

NAC two years before decided to buy two wide bodies of Air Bus, 330-200 series from American Leasing Company, AAR Corporation. A deal of 209.6 Million dollar was sealed and eventually NAC has transferred 1 Million American Dollar in advance to the company. The company will deliver the planes within 14 months and NAC will send the first trench of loan to the company after receiving the loan.