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