Treasury to grant GM additional $5.4-billion loan on Jan. 16

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Source: Detroit Free Press

Treasury to grant GM additional $5.4-billion loan on Jan. 16
BY JUSTIN HYDE • FREE PRESS WASHINGTON BUREAU • JANUARY 5, 2009
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WASHINGTON -- The U.S. Treasury said today it will grant General Motors Corp. a second loan totaling $5.4 billion on Jan. 16 as part of the $13.4-billion rescue of the ailing automaker.

The second loan, following the $4-billion loan issued last week, was disclosed in an update on the Treasury's spending of money from the $700-billion financial industry bailout. Chrysler LLC won its $4-billion loan last week as well.

With the GM and Chrysler aid plans, and the $6-billion infusion into GMAC, the Treasury cannot lend the additional $4 billion its pledged to GM without tapping the second half of the bailout fund, something Congress has vowed to block until after the Obama administration takes office.

The rest of the first $350 billion has been pledged to shore up banks and financial institutions such as insurer AIG.

Read more: http://www.freep.com/article/20090105/BUSINESS01/90105083