General Motors and Chrysler will receive up to USD 17.4 billion in short-term loans from the US government as part of an aid package to the troubled auto industry.
The package involves USD 13.4 billion in short-term financing from the Troubled Asset Relief Program (TARP), with an additional USD 4 billion available in February—contingent upon drawing down the second tranche of TARP funds. If the companies are not viable by March 31, 2009, the loan will be called and all funds returned to the Treasury, according to the plan.
White House said that GM, Chrysler must accept limitations in executive compensations. Credit will be provided to GM, Chrysler over December, January and additional USD 4 billion will be available from TARP in February.
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