Tag Archives: citifinancial

Citi To Loan Billions in TARP Funds

Citi has released its second quarterly TARP
Progress Report published today and titled, “What Citi is Doing to
Expand the Flow of Credit, Support Homeowners and Help the U.S.
Economy.” Citi’s TARP committee has authorized initiatives to deploy $44.75 billion across key areas of the U.S. economy to help expand the flow of credit to consumers, businesses and communities. The total includes $8.25 billion in new programs approved in the first quarter. The municipal lending program is intended to help finance the
construction of schools, airports, non-profit hospitals and other
infrastructure and capital projects. Loans made as part of the
initiative will provide “AA”-rated municipal clients with access to
tax-exempt funding for three years for capital investment projects or to
refinance existing variable rate debt. Citi has already made proposals
to potential borrowers totaling more than half of the $5 billion
available under the program.In addition
to the municipal lending program, these new initiatives are: Supplier Financing – $2.0 billion to purchase trade receivables from
small and medium-sized businesses in the United States in order to
provide them with needed liquidity
Residential Mortgages – An additional $1.0 billion in mortgages to lend
to qualified borrowers to refinance their primary residences
Auto Loans – $250 million to lend to consumers via dealerships nationwide. As of March 31, Citi had put $8.2 billion of its approved TARP capital initiatives to work in the economy, primarily to purchase mortgage
securities in the secondary market, a critically important source of
funds that supports lending to home buyers. In providing access to funding that is currently unavailable
from other sources, Citi also expects the program to lower borrowing
costs and add funding flexibility for municipal clients.