Ally Financial announced it has paid back the $2.9 billion loan offered through the Federal Deposit Insurance Corp.’s Temporary Liquidity Guarantee Program.
The Federal Deposit Insurance Corp.’s Temporary Liquidity Guarantee Program was issued on October 30th, 2009 and its deadline was reached on Tuesday, October 30th. The program helped the US largest new-car lender make thousands of extra loans when credit was tight.
“The TLGP was a key contributor in Ally being able to continue offering financing options for thousands of auto dealers across the U.S. and millions of their customers during the financial crisis,” said Jeffrey Brown, Ally’s senior executive vice president of finance and corporate planning.
Ally will repay the final debt insurance of $4.5 billion in December 2012. Once known as GMAC and owned by GM, Ally Financial still has to pay the US government $17.2 billion bailout. Last week the company announced it has reached an agreement with the Royal Bank of Canada to sell its Canadian operations for $4.1 billion.
Ally will also sell its Mexican unit to the ACE Group, known as the largest multiline property and casualty insurers in the world. Three months ago, Ally had to deal with a $898 million second-quarter loss, due to the bankruptcy filing of its struggling mortgage subsidiary, ResCap.