Reuters logo
AIG uses proceeds of Fed scheme to pay down government loan
November 6, 2008 / 10:01 PM / 9 years ago

AIG uses proceeds of Fed scheme to pay down government loan

NEW YORK (Reuters) - American International Group Inc (AIG.N), the insurer saved from bankruptcy by a federal bailout, has reduced the amount it owes the U.S. government for the second week in a row, according to Federal Reserve figures.

AIG currently owes $81.2 billion under two emergency facilities from the Fed, which were necessary to prevent the company from filing for bankruptcy in September. That figure was $83.5 billion a week ago.

An AIG spokesman said the insurer reduced total borrowings by making a voluntary payment with proceeds from a federal commercial paper funding facility.

The total owed under an $85 billion credit facility stood at $61.3 billion as of November 5, including interest and fees.

AIG companies also borrowed $19.9 billion under a subsequent $37.8 billion securities lending agreement agreed last month.

In all, the government has put about $123 billion at AIG’s disposal.

Also, four AIG affiliates last month applied to borrow up to $21 billion from the Fed under a commercial paper funding facility that was recently launched.

Reporting by Lilla Zuill; editing by Jeffrey Benkoe

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below