UPDATE 1-US parts suppliers to get $2 bln aid via GM-sources

* Parts suppliers to get $2 bln govt aid via GM-sources
* GM to put $100 mln into suppliers program-sources
* GM briefed a few hundred eligible suppliers-source
* Aid expected to be finalized in a few days-source

By Soyoung Kim
DETROIT, April 7 (Reuters) - Auto parts suppliers deemed
critical to General Motors Corp's operations have been
allocated $2.1 billion that will be distributed through GM
under the U.S. government's bailout of the U.S. auto parts
industry, sources with knowledge of the situation said on
Tuesday.
GM will put $100 million of its own money into the bailout
program, under a requirement that any participating automaker
should provide 5 percent matching funds to the government
money, the sources said.
On March 20, the Obama administration pledged up to $5
billion to help auto suppliers, which are crucial to the
survival of U.S. automakers.
In the past week, GM briefed a few hundred suppliers that
have been targeted to participate in the program. GM is working
with Citigroup to determine how to distribute the $2.1
billion, one of the sources told Reuters.
The sources asked not to be named because they were not
authorized to speak on the record.
GM spokesman Dan Flores said the automaker was in
discussions with Treasury officials to finalize the program in
the near future, but declined further comment.
The Treasury declined to comment.
GM, which is operating on $13.4 billion of government loans
since the start of the year, would be the gatekeeper for the
fund.
Terms for the program are expected to finalized in the next
few days, and money could be made available to the suppliers
about a week and a half after that, one of the sources said.
(Reporting by Soyoung Kim; Editing by Toni Reinhold)
((soyoung.kim@thomsonreuters.com; Reuters Messaging:
soyoung.kim.reuters.com@reuters.net; +1 313 967 1903))
Keywords: GM/SUPPLIERS

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