AIG repaying billions of its bail-out funds - KWWL - Eastern Iowa Breaking News, Weather, Closings

AIG repaying billions of its bail-out funds

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NEW YORK (AP) -- In its single biggest repayment of bail-out loans so far, American International Group said Monday that it is paying back $3.95 billion in taxpayer loans 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 $3.95 billion of the proceeds to repay the Federal Reserve.

The emergency credit line was part of a $182 billion taxpayer-funded bailout package that AIG received during the financial crisis to avoid collapse. 

As of June 30, excluding the new payment, AIG said its outstanding balance owed to the government stood at about $101 billion.

 

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