WASHINGTON — General Motors is expected to announce today that it will begin repaying its debt to the United States next month, years earlier than required, the Washington Post reported Sunday.
The nation’s largest automaker plans to pay $1 billion per quarter until the $6.7 billion loan is repaid, according to a source familiar with the matter.
The plan does not cover all of the $50 billion the United States has invested in the company, however.
How much the government will receive on its investment depends on GM’s eventual stock value. In exchange for the $50 billion, the United States holds the $6.7 billion debt, $2.1 billion in preferred stock and a 61 percent stake in the company.
But the announcement of the repayment plan indicates that GM has exceeded financial planners’ projections.
“This is a result of the company performing modestly above expectations,” said the source, who spoke on the condition of anonymity to discuss the situation.
