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Automakers financing arms may qualify for rescue
Tue, Oct 28, 2008
Reuters

WASHINGTON - Troubled US automakers may be eligible for help under the 700-billion-dollar (S$1 trillion) economic rescue package and have discussed the issue with the US Treasury Department, the White House said Monday.

Spokeswoman Dana Perino told reporters that the battered US auto giants' financing arms "could qualify" and said "that's one of the reasons Treasury has been in contact with them."

"It's possible that some of those financing arms could be a part of the rescue package, the TARP, as they call it, at the Treasury Department," she said.

"There's the application form that Treasury announced last week. And if those companies apply for that, it's possible that they could be included in it, but I'd have to refer you to Treasury for details, because they would analyze whether or not they qualify," said Perino.

Sputtering US automakers were also offered a 25-billion-dollar shot in the arm by Washington in late September when legislators agreed to cover the cost of insuring a massive loan from the Energy Department.

"We're working as quickly as we possibly can to get those regulations finalized to be able to provide that," said Perino.

 

 
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