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Thu May 19, 2011
Report: Chrysler to repay loans
$3 million in interest per day.
That's how much Chrysler paid in interest on its government loans last year according to the Associated Press.
Those high interest rates, and the stigma of being financed by the government, are driving Chrysler to pay off the government loans.
Sources told the Associated Press a deal could be reached next Tuesday:
Chrysler is close to repaying its government bailouts.
The company has lined up investors to help it refinance $7.5 billion in loans from the U.S. and Canadian governments, three people briefed on the matter said Wednesday. Under the deal, the company would take out $2.5 billion in bank loans and sell $3.5 billion worth of bonds to investors. Italy's Fiat, which has management control of Chrysler, would kick in $1.3 billion more to raise its stake in the U.S. carmaker.
To survive, the company originally received $10.5 billion from the U.S. government two years ago.