Monday will witness General Motors Co. revealing its plans to commence repaying a $6.7 billion loan to the U.S. Treasury by year-end, thanks to balanced operating improvements.

A source well-known with the development explained that after releasing its first post-bankruptcy earnings report on Monday, GM will start making $1 billion quarterly installments on the loan starting December 31. The automaker will also manage to begin repaying a $1.4 billion loan to Canada at a rate of $200 million per quarter, at the same time.

It won’t be wrong to say that better-than-expected vehicle sales encouraged GM to initiate repayments much sooner than expected, as earlier the company was not mulling to make any payments on the U.S. loan before it matured in July 2015.

The source, who didn’t want his name to be revealed, informed, “The reason GM is in a position to do that is that they have seen performance that has been modestly ahead of what the expectation was when GM went into bankruptcy and emerged from bankruptcy.”

During the GM’s government-supported bankruptcy in June and July, which lasted only about 39 days, the automaker’s vehicle sales plunged less than predicted. Since then, modest rise was seen in sales, which were also partially helped by government "cash for clunkers" incentives.

Due to this, GM was not compelled to burn through some $16 billion in taxpayer cash provided to the company when it emerged from bankruptcy. As per the source, only $3 billion of these funds have been utilized by GM. These funds are placed in a restricted escrow account that cannot be accessed without Treasury approval.

It is mulled that the loan payment would be made by GM from the escrow account.