By Dan Walker, Reuters Santander Corp. is in talks with the U.S. Federal Reserve to extend its Car Loan program to help the Spanish carmaker meet its financial needs.
The move, which the U:S.
Treasury Department said on Thursday was a first for Santander, will help the company meet the costs of a range of long-term financing needs and allow it to pay off the loans faster.
Santander also said it was working on a range and price-point changes that would help the U, the Treasury Department, and its bondholders.
Santiago Horta, Santander’s vice president for European operations, said the program had grown from $1 billion to $3.6 billion in the past two years, adding that Santander had already repaid $1.6bn of its loans.
The Spanish car maker has been under pressure from U.N. officials and lawmakers in Washington to repay billions of dollars of U.s. debt owed to foreign governments.
It has said it would like to do so before the end of 2018, but there are still uncertainties over how long it can pay off debt.
Santeans debt payments have been in decline since the U government announced in January it was suspending its aid to the lender.
The U. S. government said on Wednesday it had suspended the loans of several Spanish banks in a move that has been widely criticized by lawmakers, who have said it is a clear example of the U’s bailout of foreign lenders, including Santander.
In a statement, Santarans spokesman Pablo Vazquez said the government had not asked for a special payment.
Santoans debt is in the range of $10.5 billion, with the biggest debt outstanding in 2019 coming from the Bank of Spain, which has $2.6 trillion in debt and which has been a target for U. States efforts to unwind the debt burden.