KATHMANDU: Nepal Airlines Corporation has accumulated a total outstanding principal and interest of Rs 55.47 billion on loans taken from the Employees Provident Fund and the Citizens Investment Trust for the purchase of aircraft, according to the 63rd annual report of the Auditor General.

The report states that the amount is yet to be repaid and is required to be settled by the national flag carrier.

For the purchase of A-320 and A-330 aircraft, the corporation had taken loans worth Rs 22 billion from the Employees Provident Fund on June 18, 2013 and June 11, 2017, with the Government of Nepal acting as guarantor.

Similarly, it had borrowed Rs 12 billion from the Citizens Investment Trust.

Of the total outstanding amount, Rs 31.33 billion is due to the Employees Provident Fund and Rs 21.12 billion to the Citizens Investment Trust.

The report highlights that both principal and accumulated interest have pushed the total liability to over Rs 55.47 billion, raising concerns over the financial burden of aircraft procurement.