In its single biggest repayment of bailout loans so far, American International Group Inc. said Monday it is paying back nearly $4 billion in taxpayer aid with proceeds from a recent debt sale.
The insurer’s aircraft leasing company, International Lease Finance Corp., completed the sale of $4.4 billion in debt. AIG will use more than $3.9 billion of the proceeds to repay the Federal Reserve Bank, trimming the balance on its credit line to about $15 billion. Adding interest, the total is about $21 billion.
The emergency credit line was part of a $182 billion federal bailout package that AIG received during the financial crisis to avoid collapse. AIG has been selling off assets to pay back the aid.
“This is continuing tangible evidence of AIG’s progress in repaying the American taxpayers,” said Robert Benmosche, AIG President and CEO.
Associated Press
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