The Government aid to rescue American International Group (AIG) could cost taxpayers 2.9 billion to less than ever envisaged after the company’s prospects have improved, announced today Ministry of Finance of the USA. According to the ministry, the estimated costs of AIG fell slightly due to its increased financial stability, “reported Bloomberg. Saving the company is expected to cost the Ministry of 45.2 billion dollars database by the end of March, compared with 48.1 billion projected last November. The rescue plan for New York-based insurer had a total value of 182.3 billion dollars and comprised 69.8 billion from the Treasury, a credit line worth 60 billion from the Federal Reserve and purchase of mortgage assets owned or guaranteed by AIG to amount to 52.5 billion. Last month, the CEO of AIG Robert Benmoshe said the company is on track to repay any aid granted after reaching agreements to sell two of its subsidiaries for about 51.5 billion dollars, which is expected by the end of year. In March did it was announced that this year will receive Benmoshe wage of $ 7 million. AIG reported a profit of 1.45 billion dollars for the first quarter of 2010, and its subsidiaries for consumer finance and leasing of aircraft again given access to credit markets. In today’s trading AIG shares rose 4.9 percent as of the beginning of the year increased by 22%. Last year they lost 4.5 percent after having collapsed in 2008 with 97 percent – the year that AIG had to be saved.
Continue Reading