GM expected to repay 5.8 of 43 billion in federal loans Wednesday
General Motors Co. CEO Edward Whitacre Jr. will announce Wednesday the automaker will repay $5.8 billion in outstanding U.S. and Canadian bailout loans ahead of schedule, two people briefed on the plans said today.
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Source: GM expected to repay 5.8 of 43 billion in federal loans Wednesday
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Whitacre is expected to make the announcement when he visits a GM assembly plant in Kansas. Also Wednesday, he will make his first visit to Capitol Hill since taking the helm of the Detroit automaker and meet with House Speaker Nancy Pelosi, among others. GM had been set to repay the loans by June 30 under an agreement with the Treasury Department; the Detroit-based automaker will tap unused Treasury funds that are being held in escrow to repay the government. Wednesday's expected payoff is more than two months ahead of schedule. CNBC reported earlier today that GM would repay its loans ahead of the deadline. The White House is expected to embrace the news of GM's full repayment as a sign of its post-bankruptcy progress. GM already has repaid $2 billion of the $6.7 billion in U.S. loans, and about $400 million of $1.4 billion in Canadian government loans. It owes $5.8 billion to both countries. That will leave about $43 billion of the $50 billion bailout unpaid, since taxpayers swapped most of the amount for a 61 percent stake in GM. |
Source: GM expected to repay 5.8 of 43 billion in federal loans Wednesday
