Nepal Airlines in Financial Crisis: Nearly NPR 140 Million Yet to Be Recovered from the Government
Nepal Airlines Corporation (Nepal Airlines) has fallen into a serious financial crisis due to the burden of loans and uncollected dues. The corporation has been paying high interest on loans taken from the Employees Provident Fund and the Citizen Investment Trust, while **NPR 13.75 million** in dues remains uncollected from the government itself.
Kathmandu — The national flag carrier Nepal Airlines Corporation (Nepal Airlines) has fallen into a serious financial crisis. The corporation's financial condition has been weakening further as loans and uncollected dues remain outstanding.
The corporation is currently paying 9.25 percent interest on loans taken from the Employees Provident Fund and 10.5 percent interest on loans taken from the Citizen Investment Trust. These high interest rates have added further pressure on the corporation's cash flow.
Likewise, the corporation is yet to recover NPR 13.75 million in dues from the government itself. That amount is owed for the head of state's foreign visits, COVID-era rescue operations, and various rescue flights.
Key issues:
- 9.25% interest on the Employees Provident Fund loan
- 10.5% interest on the Citizen Investment Trust loan
- NPR 13.75 million yet to be recovered from the government
If these dues are not recovered in time and the debt burden is not reduced, the corporation's financial situation could become even more complicated.