June 18 Popular Inc, the parent of Banco Popular de Puerto Rico, said it has received regulatory approval to repay $935 million to the U.S. Treasury Department that it received under the bank bailout program.
Popular intends to fund the repayment of the Troubled Asset Relief Program (TARP) funds from a combination of internal liquidity and an issuance of approximately $400 million of debt securities, subject to market conditions.
As of May 31, $424.1 billion was disbursed under TARP. Cumulative collections, together with Treasury's additional proceeds from the sale of non-TARP shares of AIG, total $438.7 billion, according to a report by U.S. Treasury Department. (1.usa.gov/1r9LzFN)
Popular is among the top 10 remaining lenders that still owe money to the government under TARP.
TARP was set up as a $700-billion program at the height of the 2007-2009 financial crisis and was used as a mechanism for propping up struggling financial institutions that are regaining strength as economic conditions improve. (Reporting by Neha Dimri in Bangalore; Editing by Cynthia Osterman)