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GM repays $8.1 billion

Associated Press

General Motors Co.'s chief executive said Tuesday that the automaker has repaid the $8.1 billion in loans it received from the U.S. and Canadian governments, a sign that a plan to rebuild the company was working.

GM obtained a total of $52 billion from the U.S. government and $9.5 billion from the Canadian government as it went through bankruptcy protection last year. The U.S. considered $6.7 billion of its aid to be loans, while the Canadian government tagged $1.4 billion as loans.

The payments to the U.S., made Tuesday, came five years ahead of schedule, and GM Chief Executive Ed Whitacre said they were a sign that the automaker was on its way toward reducing government ownership of the company. The payments on the Canadian loans also were made Tuesday.

GM still owes $45.3 billion to the U.S. and $8.1 billion to Canada, money it received in exchange for large stakes in the company. GM plans to repay both with a public stock offering, perhaps this year.

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