Chrysler has announced that it is finally paying back the nearly $7.5 million dollars that it owes the U.S. and Canadian governments after accepting bailout loans during the economic recession.

With the company on the verge of going under, Chrysler was forced to accept the money to stay afloat. However, the loans came with high interest rates of nearly 12 percent, which were causing Chrysler to lose more than $1 billion each year.

In order to avoid paying that extra cash and get out from debt with the government, Chrysler has secured a refinancing package funded by several major banks. Under the terms of the deal, the banks will pay off Chrysler's debt in full, effectively ending the automaker's bailout. Chrysler will still be in debt to the banks, but will presumably be enjoying a significantly lower interest rate on the loan.

Paying off the debt owed to the government was one of Fiat's key goals for Chrysler when it assumed control of the automaker. Now that the company is no longer in debt to the government, Fiat will be able to increase its stake in the company to a majority share.