IFC extends USD 10 million long-term loan to Buddha Air

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Mumbai, Aug 18 (UNI) Member of World Bank Group, International Finance Corporation (IFC), will extend USD 10 million long-term loan to Nepal's Buddha Air Private Limited, for the latter's capacity expansion and implementation of cost reducing methods.

''With IFC's support, Buddha Air can focus on optimizing growth opportunities to strengthen our operations in the face of rising oil prices and a rapidly evolving competitive landscape,'' said Buddha Air Managing Director Birendra Basnet, in a company statement here today.

Buddha Air will focus on the expanding mountain-flight segment, which caters to about 10 per cent of international tourists arriving in the country.

According to the World Travel and Tourism Council, Nepal's GDP growth is expected to rise from 6.8 per cent in 2008 to 7.9 per cent by 2018 with tourism contributing a major chunk to the country's economic pie.

IFC has previously invested USD 62.7 million in four other projects in Nepal-two in hydropower generation, one in tourism, and leasing company. It has invested USD 500 million in the transportation sector including loans to India's Jet Airways, Kenya Airways, and Russia's Siberia Airlines, added the statement.

UNI ZC ZA VKG1705

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