GM to start loan repayments early
US car company GM has said it will start paying back its US government loan earlier than expected.
The first payment of $1.2bn will be made in December. It could fully repay the money by 2011, four years ahead of schedule.
The news came as GM reported a third quarter net loss of $1.2bn.
GM chief executive Fritz Henderson said the firm had work to do but that the results provided “evidence of the solid foundation we’re building”.
He said the firm had a healthier balance sheet with lower debt levels.
GM owes the US government $6.7bn and the Canadian government $1.4bn. Canada will also receive its first payment in December.
In addition Germany will be repaid the outstanding 400m euros that it lent in support of GM’s European business Opel.
Source: BBC News
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