AIG will receive more than $150 billion
11 November 2008The government of the USA has increased volume of assistance, given to the insurance company AIG, up to $150 billion and has lowered interest rates under the credits and has given it more time for sale of actives.
Support conditions allow the government to receive the greatest part of profit in case of growth of cost of AIG’s problem actives.
In the middle of September the government has received almost 80 % of AIG’s actives, having granted the loan for 85 billion dollars. Then the credit sum has been increased up to 122,5 billion dollars, and now, according to the arrangement reached on evening on Sunday, the assistance volume is increased up to 152,5 billion dollars.
Thus the government and AIG will get some money for the repayment of company’s problem actives. Their cost continues to fall, and AIG has actually lost billions dollars of already allocated state money as it should save money in reserves on covering of possible losses on these tools. According to the new agreement, FRS will enclose 30 billion dollars, and AIG - 5 billion dollars in the capital of the new company, which will redeem AIG’s “credit-default” swaps (CDS) for the sum of 70 billion dollars. If in the future cost of these CDS will grow, FRS will receive two thirds of profits and AIG - one third.
Today the company has informed, that in III quarter of 2008 its losses have made 24,47 billion dollars.
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