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 |  Apr 27 2011, 5:33 PM

Chrysler is preparing to pay back $6.6 billion on government loans, but the company will do so not from its own cash but by re-financing existing debt.

Current terms of the government loans have Chrysler paying 12 percent interest per year. While Chrysler would not be out of debt, they would theoretically free themselves from the high interest rates and no longer owe money to both the Canadian and U.S. governments. An official announcement regarding the re-financing is expected later today.

[Source: USA Today]