The United States Department of the Treasury released this on April 21:
April 21, 2010
GM Repays Treasury Loan in Full, TARP Repayments Reach $186 Billion
GM Repayment of Remaining $4.7 Billion in Debt Comes Five Years Ahead of Maturity Date
WASHINGTON – The U.S. Department of the Treasury today announced that General Motors (GM) has fully repaid its debt under the Troubled Asset Relief Program (TARP). GM paid the remaining $4.7 billion of the total $6.7 billion in debt owed to Treasury. The repayment comes five years ahead of the loan maturity date and ahead of the accelerated repayment schedule the company announced last year.
Total TARP repayments now stand at $186 billion – well ahead of last fall's repayment projections for 2010. With this repayment, less than $200 billion in TARP disbursements remain outstanding.
"We are encouraged that GM has repaid its debt well ahead of schedule and confident that the company is on a strong path to viability," said Treasury Secretary Tim Geithner. "This continued progress is a positive sign for our auto investment – not only more funds recovered for the taxpayer but also countless jobs saved and the successful stabilization of a vital industry for our country."
After this repayment, the remaining Treasury stake in GM consists of $2.1 billion in preferred stock and 60.8 percent of the common equity.
- Everyone has an agenda.
- The automotive loan consisted entirely of tax dollars, leaving aside the fact of Chinese loans.
A Forbes article saysShikha Dalmia, a senior analyst the Los Angeles-based Reason Foundation, says GM's repayment is actually a "nifty scheme to refinance GM's government debt--not pay it back!" (That's her exclamation point, not ours.)In a column posted on Friday, Dalmia takes CEO Ed Whitacre to task for ads that tout the "new GM" and say the automaker has "repaid our government loan, in full, with interest, five years ahead of the original schedule." Dalmia called the ad a "fairytale version about Government Motors' grand comeback." In particular, she bemoans the fact that Whitacre doesn't mention that American taxpayers still own 61 percent of GM--money that won't be repaid until the company begins selling public stock again.
Forbes, April 23: Sean McAlinden, chief economist at the Ann Arbor-based Center for Automotive Research, points out that the company has applied to the Department of Energy for $10 billion in low (5%) interest loan [sic] to retool its plants to meet the government's tougher new CAFÉ (Corporate Average Fuel Economy) standards. However, giving GM more taxpayer money on top of the existing bailout would have been a political disaster for the Obama administration and a PR debacle for the company. Paying back the small bailout loan makes the new--and bigger--DOE loan much more feasible.
Naturally this is convenient for me and my agenda but why wouldn't the government lie about this?In short, GM is using government money to pay back government money to get more government money. And at a 2% lower interest rate at that.