WASHINGTON - April 23, 2010 - A Republican senator is questioning General Motors’ claim that it has repaid its taxpayer-funded loans in full.
Senator Chuck Grassley is asking Treasury Secretary Timothy Geithner to justify those claims. According to the Iowa Republican, GM has repaid its TARP (taxpayer-funded bailout) loans using other TARP funds.
The automaker - which is 61% owned by the U.S. and 12% owned by Canada - announced on Wednesday that it has fully repaid the $6.7-billion in loans it received from the U.S. and Canadian governments.
“GM is able to repay the taxpayers in full, with interest, ahead of schedule, because more customers are buying vehicles like the Chevrolet Malibu and Buick LaCrosse we build here in Fairfax,” said GM Chairman Ed Whitacre during a visit to an auto plant in Fairfax, Kansas on Wednesday.
But as the Associated Press reported, GM received a total of $52 billion from the U.S. government and $9.5 billion from the Canadian and Ontario governments as part of its bankruptcy reorganization. The U.S. considered $6.7 billion of the $52 billion as a loan.
In fact, GM still owes $45.3 billion to the U.S. and $8.1 billion to Canada, money it received in exchange for shares in the company. GM said it hopes to repay those amounts with an eventual public stock offering, the AP reported.
