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Detroit Could Get $17 Billion In Short-Term Loans

STEVE INSKEEP, host:

NPR's businesses news starts with a $17 billion bailout for Detroit.

(Soundbite of music)

INSKEEP: OK. President Bush announced the terms this morning, and here's what we know so far: Most of the money goes to General Motors; the rest goes to Chrysler. They are the automakers in the biggest trouble. Ford says it is OK for the moment. Most of the money comes right away and gets the automakers through the holidays. The rest of it comes next month, provided that Congress allows it. All of this funding would come from the money that Congress approved for the financial bailout earlier this year. And by the way, Treasury Secretary Henry Paulson is now saying that the first half of that bailout is now essentially exhausted, and Congress will need to approve the next $350 billion of it for financial industries. As for the automakers, these are short-term loans. The companies will have only until the end of March to restructure and cut costs or, President Bush says, they will face bankruptcy. Transcript provided by NPR, Copyright NPR.

NPR transcripts are created on a rush deadline by an NPR contractor. This text may not be in its final form and may be updated or revised in the future. Accuracy and availability may vary. The authoritative record of NPR’s programming is the audio record.