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August 23, 2010 at 08:00 PM
WASHINGTON BUREAU — American International Group Inc. (NYSE:AIG) has paid almost $4 billion back to the Federal Reserve Bank of New York.
AIG, New York, now owes $15 billion in principal and about $6 billion in interest and fees on a New York Fed revolving credit facility set up in March 2009, a company spokesman says.
AIG’s credit agreement calls for the New York Fed to lower the amount of credit available as AIG reduces the balance. The total amount of New York Fed credit available to AIG will drop to $30 billion, from $34 billion, according to a document AIG filed with the U.S. Securities and Exchange Commission.
In addition to backing the AIG credit facility, the New York Fed has provided help through two partnerships, Maiden Lane II L.L.C. and Maiden Lane III L.L.C. The partnerships invested in AIG residential mortgage-backed securities and asset-backed collateralized debt obligations at a time when credit markets were frozen.
AIG says it made the credit facility payments using cash generated by its International Lease Finance Corp. (ILFC) unit.
New York Fed officials declined to comment but seem to be pleased.
