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Post by Cullyn Of Cerrmor on Jan 1, 2009 10:12:25 GMT 9.5
US Treasury finalizes 4-billion-dollar loan for GM
January 1, 2009 - 10:24AM
The US Treasury said late Wednesday it had finalized a 4-billion-dollar emergency loan for troubled automaker General Motors.
The department "today finalized the loan transaction for GM and funded the first tranche of 4 billion US dollars," said Treasury spokeswoman Brookly McLaughlin.
The loan is part of a 13.4-billion-dollar rescue package the US government approved this month for GM and Chrysler to stave off collapse amid tight credit and dismal sales.
GM would receive a total of 9.4 billion US dollars in loans through January, and could obtain an additional four billion US dollars from February pending congressional approval. Treasury has also provided six billion US dollars in aid to GMAC, GM's financial arm.
McLaughlin said the agency is "working expeditiously with Chrysler to finalize that transaction and we remain committed to closing it on a timeline that will meet near-term funding needs."
Technical difficulties may be preventing Chrysler from obtaining the 4 billion US dollars promised before year's end, The Wall Street Journal reported in its online edition.
© 2009 AFP This story is sourced direct from an overseas news agency as an additional service to readers. Spelling follows North American usage, along with foreign currency and measurement units.
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Post by thelion on Jan 1, 2009 20:19:01 GMT 9.5
At least the car companies got a loan the people that caused the problem got relief as a gift.
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