Tuesday, May 24, 2011

Chrysler has paid back loans.

Chrysler has paid back the money that the U.S. and the Canadian governments, Said the automaker on Tuesday.

 It all included; $5.9 billion owed to the U.S. taxpayers and $1.9 billion owed to the Canadians, Chrysler said. "The original loans were repaid in full, more than six years ahead of schedule, along with the payment of accrued interest and additional consideration," said Chrysler, in a statement.

This doesn’t mean that Chrysler is debt free no, no, no. In fact, Chrysler took an additional loans last week to help pay off older debt. Isn’t that the same like paying a credit card bill with another credit card? Will it be a near ending cycle to pay one loan with another one? Well the company said that “it could save $300 million in annual interest payments through refinancing”.  

There is a saying in Puerto Rico that says: it’s like drying a puddle of water with a wet towel. Well I’m glad that Chrysler that pay off the loans to the U.S. and the Canadians. But now how they are going to do with the rest of the loans.

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