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WORLD> America
US govt extends new aid package to AIG
(Agencies)
Updated: 2009-03-02 20:55

WASHINGTON -- The US government unveiled a revamped rescue package for insurance giant American International Group Monday, and will provide the troubled company another $30 billion on an "as needed" basis.

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The company has burned through cash and has been unable to find buyers for pieces of its business that it hoped to sell to repay the government on its existing aid package, which totals some $150 billion.

The new package calls for the Federal Reserve to take stakes in two international units.

Instead of paying back $38 billion in cash with interest that it has used from a Federal Reserve credit line, AIG now will repay that amount with equity stakes in Asia-based American International Assurance Co and American Life Insurance Co, which operates in 50 countries.