(May 24, 2011) DETROIT — Chrysler today announced the repayment of $7.6 billion in outstanding U.S. and Canadian government loans following the completion of new refinancing transactions. The original loans were repaid in full, more than six years ahead of schedule, along with the payment of accrued interest and additional consideration.

The company made payments of $5.9 billion to the U.S. Treasury and $1.7 billion to Export Development Canada (EDC) to retire the loans granted when Chrysler Group began operations in June 2009.

"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," CEO Sergio Marchionne said in a statement. "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 to re-establish itself as a strong and viable carmaker."

Chrysler's fortunes have been boosted by improved sales as it rolls out 16 new or refreshed models this year. In the first quarter, the company reported a net profit for the first time since exiting bankruptcy under the control of Italy's Fiat.

The automaker borrowed $5.1 billion from the United States and $1.6 billion from Canada in June 2009.

Chrysler said it has paid $6.5 billion in total to the U.S. government, and $2 billion in total to EDC. The amounts include $1.8 billion in interest.

Last week Chrysler secured new financing that allowed it to pay off the loans. The financing package includes a loan of $3 billion, debt securities totaling $3.2 billion and a revolving credit line of $1.3 billion.

The new financing will save Chrysler an estimated $350 million a year in interest expenses.

As a result of the loan repayments, Fiat's stake in Chrysler will rise to 46 percent as of Tuesday.

Sources: Chrysler, Automotive News