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
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