Business

Published: Tuesday October 20, 2009 MYT 9:10:00 AM

AIG lends its aircraft leasing unit another US$2bil


NEW YORK: American International Group Inc. said Monday it loaned another US$2 billion in government-backed funds to its aircraft leasing unit to help its short-term financing needs.

The loan was made with funds from the Federal Reserve Bank of New York, AIG said in a regulatory filing.

The financial services giant is 80 percent owned by the U.S. government following a massive bailout last year.

The latest loan to International Lease Finance Corp. came on top of $1.7 billion AIG lent in March, which was used to repay debt and other obligations.

The loans are backed by aircraft that make up the unit's fleet.

AIG earlier this year scrapped a potential sale of International Lease Finance.

The insurer has sold off several other units as it attempts to reduce its size and pay back the government's investment. - AP


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