GM to start loan repayments early

Posted on November 16th, 2009 by News in Manufacturers, News

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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