NEW YORK (
) -- Over 30 banks have signed a multi-billion dollar credit facility agreement with
American International Group
less than two weeks after the insurer set out plans to exit a government bailout.
The insurer entered into two, $1.5 billion credit facilities on Monday. The first is a three year facility and the other is for one year. In addition, AIG's property and casualty insurance subsidiary named Chartis received a $1.3 billion letter of credit, according to a
Securities and Exchange Commission
The facilities were arranged by 36 banks, led by
Bank of America
"The number of banks is actually a reflection of the eagerness to be involved," wrote AIG spokesperson Mark Herr in an email statement.
The facilities will be made available after AIG pays back the U.S. Treasury Department and
. The government plans on selling part of its stake in AIG during the first quarter of 2011.
"These credit facilities, combined with the debt offeringand contingent liquidity facility, demonstrate that AIG has momentum and has made substantial and impressive progress this year," said AIG CEO Robert Benmosche in a press release. "As we approach year's end, we believe we are close enough to completing our recapitalization plan that we can see the finish line."
--Written by Maria Woehr in New York.
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