Chrysler repays $7.6 bn to US, Canada

May 25th, 2011 - 11:41 am ICT by IANS  

Washington, May 25 (IANS/EFE) Chrysler Group LLC said Tuesday that it has completed repayment of $7.6 billion in loans from the US and Canadian governments.

Washington, Ottawa and the Ontario provincial government extended the loans in 2009 to save Chrysler from liquidation.

The bulk of the rescue package, $5.9 billion, came from the US government, which still holds a 6.6 percent stake in the Michigan-based automaker.

Shortly before the official announcement, the former Democratic governor of Michigan, Jennifer Granholm, said during a conference call with reporters that the loans granted to Chrysler and General Motors were what made it possible for the US automobile sector to recover.

Granholm criticised prominent Republicans like presidential hopefuls Mitt Romney and Newt Gingrich, who during the crisis opposed the granting of loans to the sector.

“What do they have to say now?” Granholm asked, recalling that the sector has added 55,000 jobs since the 2009 crisis, when Chrysler and GM declared bankruptcy for a month in order to proceed with their restructuring with the aid of government money.

–IANS/EFE
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