The initial $4 billion low-interest federal government loan for Chrysler LLC - which was slated for December end - came on Friday; the delay resulting form unrevealed problems in the application process of the automaker. On December 31, General Motors Corp. (GM) received its first installment of $4 billion, out of a total of $9.4 billion through January.

The loans that have been extended to GM and Chrysler are a part of $17.4 billion in financing, which the Treasury had promised to the companies on December 19.

Chrysler, being smaller than GM, was offered only $4 billion in loans. This emergency loan amount will help Chrysler, largely owned by Cerberus Capital Management LP, carry on funding its operations and making payments to its suppliers for parts.

Robert Nardelli, Chrysler's Chairman and Chief Executive, said: "This initial loan will allow the company to continue an orderly restructuring, while pursuing our vision to build the fuel-efficient, high- quality cars and trucks people want to buy, will enjoy driving and will want to buy again."

As regards a loan for Chrysler Financial, the automaker's financing arm, Cerberus said that "productive discussions" are on between Chrysler Financial and the US Treasury Department and "a closing is expected in due course."

It is quite possible that both, GM and Chrysler, are offered more loans in March if they are able to demonstrate their effective restructuring of operations to the government, and can show that they are on course to become profitable.