The U.S. administration said on Feb. 17 it will deliver another four billion dollars in loan funds to auto giant General Motors as it battles to stay afloat. The four billion to be disbursed are part of a plan drawn up under the previous administration of George W. Bush, the official said privately.
In its waning weeks, the Bush administration approved $9.4 billion and four billion for GM and Chrysler in December and January, and then an additional four billion to GM alone in February.
The credit, to be released by the new administration of President Barack Obama, comes with strict terms and is meant to force the companies and unions to make major sacrificies if the automakers are to remain viable.
But if the automakers cannot demonstrate by March 31 that they are viable in the long term, Treasury will be calling in the loans.
Copyright Agence France-Presse, 2009
