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GM repays Germany on $2.2B Opel loan

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GM repays Germany on $2.2B Opel loan

General Motors announced on Friday that it has repaid Germany on a $2.2 billion loan the company received in June to keep its Opel brand afloat. GM says it has already paid back a previous loan of $300 million.

Germany extended bridge loans to General Motors during its 39-day bankruptcy to keep its German Opel brand up and running, but demanded the Detroit automaker repay the loans following Opel’s failed sale to Canada’s Magna International.

“We now have an outstanding balance of 400 million euros, which we expect to pay back by November 30,” said Enrico Digirolamo, GM Europe chief financial officer, in a statement.

The German government vowed another 4.5 billion euro to aid Opel’s turnaround, but that loan is now in doubt as Germany distances itself from funding U.S. government-owned General Motors. GM chairman Ed Whitacre says the company has no intentions of asking the German government for additional loans.

However, GM is hopeful that other European governments will help fund Opel’s turnaround plan. If no European governments step up, GM could be forced to rescue Opel with U.S. taxpayer dollars.


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