AIG rescue plan signed

American International Group Inc says it has completed the deal under which it is getting an US$85bn (€57.8bn) injection of taxpayer money, while the US government gets an 80% stake in one of the world's largest insurers.

New York-based AIG said it signed a definitive agreement with the Federal Reserve Bank of New York for the deal that was hammered out earlier this month.

The agreement provides a two-year $85bn emergency loan at an interest rate of about 11.5% to AIG.

In return, the US government will get a 79.9 % stake in AIG.

AIG said it will repay the money in full with proceeds from the sales of some of its assets.