George S. May Business Blog

GM will start paying back loans next month

General Motors will announce later today its plans to begin repayment of their $6.7 billion dollar loan from the government. Starting next month, they will pay $1 billion each quarter until the full sum is paid.

The Washington Post made a good point, however, in that the amount the government gets back from GM depends on the value of their stock.

“With $6.7 billion in debt, $2.1 billion preferred stock and a 61 percent stake in the automaker, the $50 billion total is a long way off from being paid in full. And when GM reports its financial results tomorrow, it’s not expected to show a profit, although the overall picture could be slightly better than anticipated.” (source)

Related posts:

1. Chrysler to reopen 7 plants this month Chrysler has announced that it will be reopening 7 of its 11 assembly plants this month. According to Chrysler, two plants in Michigan, one in...


2. Bailed-out banks to face government probe over fees, high interest loans Due to an eruption of protest to the continued increases in interest rates and fees, on behalf of lending institutions who received bailout dollars, the...


3. Why am I paying for Vikram Pandit’s new office? Citigroup Inc. is planning to spend a cool $10 million, or so, on new offices for CEO Vikram Pandit and his lieutenants. This news comes...


4. NY Times to start charging for online content in 2011 — Will they survive the change? The New York Times has decided to begin erecting a pay-wall, so to speak, starting in 2011. Basically, non-paying NYT-online readers will be limited to...


5. American Airlines to start charging for blankets and pillows If your plans in the future include flying domestic on an American Airlines flight, bring a blanket…or an extra $8. Starting May 1st, American Airlines will...