Chrysler exits government bailout 6 years early
Baku, May 25 (AZERTAC). US automaker Chrysler announced Tuesday it had exited six years early a US and Canadian rescue program with the repayment of billions of dollars provided during the 2008-2009 economic crisis.
Chrysler said it had repaid, six years ahead of time, $5.1 billion along with $865 million in interest and fees to the US Treasury.
It repaid another $1.7 billion in principle, interest and fees to the government-owned Export Development Canada.
After going through a sweeping bankruptcy reorganization underpinned by the government loans, the company said it was "returning as a competitive force in the global automotive industry."
Earlier this month, Chrysler raised $8.8 billion in private loans and debt placements as well as new equity from key shareholder Fiat, in order to retire the government financing.
That will save it an estimated $350 million a year in interest expenses, Chrysler said.
"Less than two years ago, we made a commitment to repay the US and Canadian taxpayers in full and today we made good on that promise," said Chrysler and Fiat chief executive Sergio Marchionne in a statement.
"Paying back the loans, along with the financial community`s investment in our refinancing packages, marks another step in the company returning as a competitive force in the global automotive industry."
President Barack Obama, who went out on a political limb when his administration pushed to use financial industry rescue funds for big carmakers Chrysler and General Motors, called the repayment a "significant milestone" for the company and for people who rely on the auto industry.
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