GM Repays First $1 Billion

Tax payers fearful of GM's intention to repay its 2009-acquired debt have been somewhat made at ease with the announcement the carmaker has kept its promise (made by its former CEO, Fritz Henderson) and repaid the first $1 billion of its some $50 billion received from the US. In addition, the first $192 million have been repaid to Export Development Canada. The announcement was made by the interim CEO, Ed Whitacre.

"I am pleased to announce that today, GM followed through on its commitment to begin loan repayments to the U.S. and Canadian and Ontario governments.  We paid $1.0 billion to the U.S. Treasury and $192 million to Export Development Canada," he said in a release.

"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."

GM has received $52 billion from the US government to survive the bankruptcy process. Out of that amount, $45.3 billion was converted into equity as the government got 61 percent of the car manufacturer.

As announced in the beginning of the month. GM plans to start paying back in quarterly installments starting this month with 1.2 billion.

Even so, the US has little hope of ever getting the entire amount back, from both GM and Chrysler. The government expects to lose $30 billion out of the $82 billion pumped in the auto industry this year.
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About the author: Daniel Patrascu
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Daniel loves writing (or so he claims), and he uses this skill to offer readers a "behind the scenes" look at the automotive industry. He also enjoys talking about space exploration and robots, because in his view the only way forward for humanity is away from this planet, in metal bodies.
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