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Early loan payback in the future for GM

General Motors Co., which received a multibillion-dollar rescue packagefrom Canadian taxpayers in June, says it will start early repayment ofloans next month.

General Motors Co., which received a multibillion-dollar rescue package from Canadian taxpayers in June, says it will start early repayment of loans next month.

In a sign of a positive beginnings for its North American restructuring, Detroit-based GM revealed yesterday it would pay $192 million US in December and accelerate other payments.

GM said in its first preliminary financial report for the third quarter that the company plans to repay the remaining $1.5 billion in loans to the federal and Ontario governments ahead of the scheduled maturity date of July 2015.

Furthermore, GM said in its financial statement that it would repay $1 billion of $7.8 billion in loans to the U.S. government next month.

It is possible GM could repay the massive loans to both countries by the end of next year if the company’s financial fortunes continue improving, but insiders say that goal might be overly ambitious.

The company said in the statement that it is speeding up payments because of improving international economic conditions, stabilizing industry sales and a healthier cash position.

GM, which does not break out results from its Canadian operations, said in its quarterly report that it lost $1.15 billion on net revenues of $26.3 billion for the July 10 to Sept. 30 period.

In repaying the governments, GM said it is using money from government funds in escrow and indicated it would continue making quicker quarterly payments. The company pays interest on quarterly outstanding balances.

In the first payment, Ottawa will receive about $132 million and Ontario $68 million from GM through Export Development Canada, a federal agency.

GM received about $10.6 billion from the federal and Ontario governments in loans and cash in exchange for stock in June. The two Canadian governments hold 11.7 per cent of GM’s new equity.