American International Group (AIG) has taken
another big step towards repaying the US government.
In the latest in a series of repayments, the
insurer has made the final payment of $1.5bn to withdraw the US
Treasury’s interest in AIA Aurora, a special purpose vehicle
created to hold ordinary shares in AIG’s formerly wholly-owned
subsidiary, American International Assurance.
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“We promised the taxpayers they would be paid
back at a profit, and so far we have met that goal,” commented AIG
president and CEO Robert H Benmosche.
Achieving that goal has seen sales of massive
chunks of the AIG empire that was.
He continued that the only remaining
outstanding loan is the Maiden Lane III loan advanced by the
Federal Reserve Bank of New York.
This has been significantly reduced and now
stands at $9bn.
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By GlobalDataIn addition, the US government still owns a
70% stake in AIG worth about $70bn.
The government reduced its equity stake in AIG
from 92% to 70% in March 2012 through the sale of shares to private
sector investors.
At the height of its financial problems the
maximum support to AIG authorised by the US government reached
$182.3bn, of which $21bn was unused.
