GM begins repaying loans from U.S., Canada
General Motors Co. began repaying its U.S. and Canadian government loans today, as previously promised.
In November, GM shocked the auto industry by saying it would begin repaying money owed to the governments earlier than expected.
“We are grateful for the support the governments have provided us. We look forward to continuing repayments through June 2010, at which time the balances will be paid in full, assuming no downturn in the economy or business,” Ed Whitacre, GM chairman and CEO, said in a statement.
GM paid $1 billion to the U.S. Treasury and $192 million to the Canadian government.
GM will now owe $5.7 billion to the U.S. government and $1.2 billion to the Canadian government.
In a statement, the U.S. Department of Treasury acknowledged the payment and added: "After emerging from bankruptcy in July, General Motors is on a path to stability and poised to return additional taxpayer investments.
The U.S. government pumped much more into GM to keep it alive this year, around $50 billion total. Much of that was converted into an ownership stake in GM once it came out of bankruptcy in July.
To make back the money, GM will have to become successful and the government will have to sell off its stock when the company goes public again.
Source: GM begins repaying loans from U.S., Canada
In November, GM shocked the auto industry by saying it would begin repaying money owed to the governments earlier than expected.
“We are grateful for the support the governments have provided us. We look forward to continuing repayments through June 2010, at which time the balances will be paid in full, assuming no downturn in the economy or business,” Ed Whitacre, GM chairman and CEO, said in a statement.
GM paid $1 billion to the U.S. Treasury and $192 million to the Canadian government.
GM will now owe $5.7 billion to the U.S. government and $1.2 billion to the Canadian government.
In a statement, the U.S. Department of Treasury acknowledged the payment and added: "After emerging from bankruptcy in July, General Motors is on a path to stability and poised to return additional taxpayer investments.
The U.S. government pumped much more into GM to keep it alive this year, around $50 billion total. Much of that was converted into an ownership stake in GM once it came out of bankruptcy in July.
To make back the money, GM will have to become successful and the government will have to sell off its stock when the company goes public again.
Source: GM begins repaying loans from U.S., Canada
