AIG upbeat on repaying government debt

by Gill Montia

Story link: AIG upbeat on repaying government debt

American International Group (AIG) has reassured shareholders that its debt to the US Treasury can be repaid.

The insurer, which came close to collapse last September just hours after Lehman Brothers filed for bankruptcy protection, has so far needed over $182 billion in government support.

The US taxpayer now owns 79.9% of the business and chief executive officer, Edward Liddy, has warned investors that the stake may never be fully relinquished.

The outgoing Mr Liddy did however confirm that the group is continuing to reduce its exposure to the derivatives market and has entered a more stable phase.

AIG is continuing with a restructuring programme that involves multiple disposals and this week announced the sale of AIG Credit Card Company (Taiwan) Limited to Far Eastern International Bank.

In addition, agreement has been reached over the sale of OOO AIG Bank (RUS), its embryonic consumer finance operations in Russia, to Banque PSA Finance SA, part of the PSA Peugeot Citroën Group.