GM Plans to Repay Federal Loans by June

GM will repay all of its $6.7 billion in government loans by the end of June 2010, according to Chairman and CEO Ed Whitacre Jr.

During a roundtable discussion with reporters, Whitacre said that starting this month, the company will make quarterly payments of $1.2 billion. He added that GM could repay the loan even sooner, but the company has yet to decide if that would be prudent.

Of course, the $6.7 billion in loans is only the tip of the $52 billion iceberg. That’s the total amount of taxpayer aid invested in the automaker, with $45.3 billion converted into equity for a 61% government stake in the company.

To recoup that money, GM will have to make an initial public offering of stock, but Whitacre said GM has no timetable yet for that option.

CEO: GM to Repay Government Loans by End of June (Associated Press)