US offers automakers $13.4 bn rescue, sets deadline
<p>US govt said that it would provide ailing automakers with 13.4 bn dollars in short-term financing, setting a deadline of March 31, 2009 for them to become viable.
By Agencies |
WASHINGTON: The US government said on Friday it would provide ailing automakers with 13.4 bn dollars in short-term financing, setting a deadline of March 31, 2009 for them to become viable.
"The terms and conditions of the financing provided by the Treasury Department will facilitate restructuring of our domestic auto industry, prevent disorderly bankruptcies during a time of economic difficulty, and protect the taxpayer by ensuring that only financially viable firms receive financing," the White House said in a statement.
The funds will be drawn from the Treasury's 700 bn dollar Troubled Asset Relief Program (TARP).
An additional 4.0 bn dollars from the TARP will be available in February, "contingent upon drawing down the second tranche of TARP funds," the statement said.
"The firms must use these funds to become financially viable. ... If the firms have not attained viability by March 31, 2009, the loan will be called and all funds returned to the Treasury.
"The terms and conditions of the financing provided by the Treasury Department will facilitate restructuring of our domestic auto industry, prevent disorderly bankruptcies during a time of economic difficulty, and protect the taxpayer by ensuring that only financially viable firms receive financing," the White House said in a statement.
The funds will be drawn from the Treasury's 700 bn dollar Troubled Asset Relief Program (TARP).
An additional 4.0 bn dollars from the TARP will be available in February, "contingent upon drawing down the second tranche of TARP funds," the statement said.
"The firms must use these funds to become financially viable. ... If the firms have not attained viability by March 31, 2009, the loan will be called and all funds returned to the Treasury.
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