Ally says it will be government debt-free by next year.
Ally Financial, the auto lender formerly GMAC, says it will repay 100 percent of its outstanding government loans by 2014. Ally currently owes the United States government $14.6 billion stemming from a 2009 bailout by the Treasury's Troubled Asset Relief Program.
"We are 100 percent confident that we can repay the American taxpayer completely," Ally CEO Michael Carpenter told Bloomberg. "Whether that's this year or next year, I don't know. But it's in that time frame."
Ally received a total of $17.2 billion from the Treasury's TARP bailout, but has paid some of that back over the last four years.
In order to repay its debt, Ally has been shedding its non-core businesses over the last few months. In November Ally sold its auto-finance businesses in Europe, Latin America and China to GM Financial for $4.2 billion. One month prior, Ally unloaded its Canadian operations for $4.1 billion. Ally has also sold its Mexican operations for $865 million.
Ally, which has financed the most new and used vehicles in the United States for the last two years, is now focusing on its U.S. operations.