Nepal Airlines has sent a letter to two of the state-owned provident funds, the EPF and the Citizen Investment Trust (CIT) requesting them to waive off the interest and penalties on their outstanding loans along with increasing the tenure.
"Due to the global coronavirus, the corporation's business has also been adversely affected, and the corporation has sent a request letter to the Employee Provident Fund (EPF) and the Citizen Investment Fund (CIF) to assist by waiving interest, damages and penalties for the affected period and facilitating the payment of debt obligations by increasing the number of instalments," the airline said in a statement.
Nepal Airlines Corporation has made loan repayments to the CIF and EPF of $22.5 million dollars since June 2022, the statement added.
However, the airlines did not specify the number of loans involved, the total amount owed, or what portion of the repayments covered interest, other penalties or additional instalment periods requested.
It was also recently reported that Nepal Airlines had made no repayments on one 2017 loan from EPF for 91.6 million and that the provident fund had moved to capitalize the interest.