The Chrysler Group announced the repay of U.S. and Canadian government loans totaling $7.6 billion (€5.39 billion), more than six years ahead of schedule. More specifically, the Detroit automaker made a payment of $5.9 billion to the U.S. Treasury (UST) and $1.7 billion to Export Development Canada (EDC) to retire the loans granted in June 2009. EDC is the holding company through which the Canadian federal and Ontario provincial governments provided loans to Chrysler Group.

In total, the Chrysler Group has paid the UST $6.5 billion and the EDC $2 billion, including $1.8 billion in interest and additional consideration. “Less than two years ago, we made a commitment to repay the U.S. and Canadian taxpayers in full and today we made good on that promise,” said Sergio Marchionne, CEO Chrysler Group LLC.

The company obtained the money to repay the loans from new financing transactions consisting of a term loan totaling $3 billion, debt securities totaling $3.2 billion and a revolving credit facility of $1.3 billion. It also used the $1.3 billion Fiat paid for 16 percent of Chrysler. The new financing scheme will save Chrysler Group an estimated $350 million a year in interest expenses.

The Detroit automaker continues to have more than $10 billion in liquidity after the refinancing and loan payoffs, which includes an undrawn revolving credit facility of $2.6 billion.

“The loans gave us a rare second chance to demonstrate what the people of this company can deliver and we owe a debt of gratitude to those whose intervention allowed Chrysler Group to re-establish itself as a strong and viable carmaker,” Marchionne said.

“Paying back the loans, along with the financial community’s investment in our refinancing packages, marks another step in the Company returning as a competitive force in the global automotive industry,” the CEO added.