GM to get another $5.4 billion from Treasury on January 16

WASHINGTON (Reuters) - General Motors Corp GM.N will receive a second $5.4 billion installment of its government loan on January 16, the U.S. Treasury said on Monday.

In a transaction report for its bailout fund, the Treasury said it has approved the release of a total of $9.4 billion for GM, including $4 billion disbursed on December 31 and $5.4 billion to be funded on January 16.

The Treasury has agreed to lend GM another $4 billion, but those funds would come from a second $350 billion tranche of the $700 billion Troubled Asset Relief Program, which Congress could block.

GM on Monday reported a 31 percent decline in U.S. sales in December compared with a year earlier, capping a 23 percent decline for all of 2008.

The Treasury report also confirmed disbursement of $20 billion to Citigroup (C.N) and $15 billion to seven U.S. banks, including $7.58 billion to PNC Financial Services Group (PNC.N) and $3.41 billion to Fifth Third Bancorp (FITB.O).

Other banks receiving TARP funds included: commercial finance firm CIT Group Inc (CIT.N); SunTrust Banks (STI.N); Hampton Roads Bankshares (HMPR.O); First Banks Inc and West Bancorp (WTBA.O).

To date, the Treasury has released nearly $257 billion for payment from the TARP fund, including a $4 billion loan for Chrysler LLC that closed on Friday.

However, the Treasury has allocated in excess of the TARP's first tranche of $350 billion. If it must make good on all of its pledges and Congress denies or delays the release of a second tranche, some institutions could face a reduction in requested funds.

The outlays so far include $177.54 billion in capital injections into banks, excluding $10 billion pledged, but not paid to Merrill Lynch, now owned by Bank of America (BAC.N). Under the Capital Purchase Program, allocated at $250 billion, the Treasury purchases preferred stock and warrants from participating institutions.

Including the Chrysler loan, it has disbursed $19.4 billion under its Automotive Industry Financing Program. This program also includes the GM loans, $6 billion of support for finance firm GMAC LLC.

The Treasury said it has also provided $40 billion to American International Group (AIG.N) and $20 billion for Citigroup under separate programs.

(Reporting by David Lawder; editing by Gary Crosse)