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Chrysler set to pay back federal loans today

Chrysler_Flickr_Ricardo_Giaviti.jpg
Ricardo Giaviti
/
Flickr
Chrysler is set to pay back its federal loans in full today.

Chrysler will pay back its federal loans in full today. Michigan Radio's Tracy Samilton reports:

It's another milestone in the company's long struggle to recover from bankruptcy. Chrysler will wire-transfer nearly $6 billion to the U.S. Treasury and $1.5 billion to the governments of Canada and Ontario. Chrysler used some cash from Fiat for the transaction - and refinanced the rest with loans from private banks and investors. The move will save Chrysler $300 million a year in interest and is one more step towards independence from the government. The U.S. Treasury still holds about eight and a half percent of Chrysler stock. Fiat could end up buying that stock in the future. As of today, Fiat owns forty-six percent of Chrysler.

The news is making headlines this morning:

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