The US Treasury said late on Wednesday it had finalised a US$4 billion (S$5.7 billion) emergency loan for troubled automaker General Motors. -- PHOTO: ASSOCIATED PRESS
WASHINGTON - THE US Treasury said late on Wednesday it had finalised a US$4 billion (S$5.7 billion) emergency loan for troubled automaker General Motors.
The department 'today finalised the loan transaction for GM and funded the first tranche of US$4 billion', said Treasury spokesman Brookly McLaughlin.
The loan is part of a US$13.4 billion 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 US$9.4 billion in loans through January, and could obtain an additional US$4 billion from February pending congressional approval. Treasury has also provided US$6 billion in aid to GMAC, GM's financial arm.
Ms McLaughlin said the agency is 'working expeditiously with Chrysler to finalise 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 US$4 billion promised before year's end, The Wall Street Journal reported in its online edition. -- AFP
