GM, Chrysler to pay minimum 5 pct interest: Treasury

WASHINGTON (Reuters) - The Treasury said on Friday that General Motors Corp. and Chrysler will pay a minimum of 5 percent interest on government loans and must repay them by December 29, 2011.

In term sheets showing details of loans to the two automakers, the Treasury said Chrysler will get $4 billion immediately, while GM will get up to $13.4 billion through February 17.

The interest rate will be 300 basis points over the London Interbank Offered Rate, with a LIBOR floor of 2.0 percent, making the effective minimum rate 5.0 percent. In the event they default, the rate spread increases to 800 basis points over LIBOR, the Treasury said.

(Reporting by David Lawder, Editing by Chizu Nomiyama)