Updated from Oct. 30In an unexpected development, the Federal Reserve is indicating AIG's ( AIG) borrowing against credit lines was down $6.8 billion to $83.5 billion as of Wednesday night. Even so, instead of reducing reliance on federal funding, AIG this week asked taxpayers for another $21 billion in bailout money. The reduction in fed borrowing reflects a voluntary repayment of $6.8 billion on the core $85 billion loan facility, pushing it down to $65.8 billion including $331 million in interest and fees. The securities lending program balance was reduced $300,000 to $17.7 billion. AIG filed an application on Monday with the Fed for participation in the commercial paper funding facility (CPFF) for four subsidiaries unconnected with the insurance businesses. In an 8-K filing with the Securities and Exchange Commission Thursday, AIG states that the $21 billion would be used "to refinance AIG's outstanding commercial paper as it matures, meet other working capital needs and make voluntary prepayments under AIG's $85 billion credit facility with the Federal Reserve Bank of New York." AIG's director of public relations, Joe Norton, on Friday confirmed the figures and that the reduction is directly attributable to the application of CPFF borrowings. Norton said "there will not be any reporting by AIG on this funding at the present time." He added that there was no dollar-for-dollar relationship between the CPFF borrowing levels and the reduction in the Fed loan because of costs and fees amongst other things. Last week, AIG AIG had only about eight weeks of cash left if it continued to draw down on the Fed loan, and now it's down to seven weeks if the same borrowing trend continues, even despite the "reduction" it has made.