American International Group has announced arrangements with the U.S. Treasury Department to repay the Federal Reserve Bank of New York for emergency funds provided to the company through a credit facility in the wake of the financial crisis.

The insurer expects to take a charge of about $4.7 billion upon termination of the credit facility.

"Our filing today that we have signed the definitive recapitalization agreement with the government marks an important step forward in our progress toward completely repaying taxpayers. We remain committed to executing the steps and meeting all conditions in the agreement as soon as possible," a release from AIG read.

Shares of AIG (NYSE: aig) were halted while about 4 percent lower at 3:33 p.m. Wednesday. Check late AIG stock quotes here.

Earlier Wednesday, Reuters reported that the U.S. Treasury Department, which currently owns 92.1 percent of AIG following its 2008 bailout, could cut its stake by up to one-fifth in a stock sale next year.