(PTI): Citigroup Inc has announced that it will pay the US Treasury back the bailout money it received last year under the Troubled Asset Relief Program.

From October 2008 to January 2009, the US Treasury provided Citigroup with three rounds of financial aid worth $45 billion.

The bank has to pay back $20 billion of the aid as the US government acquired 34 percent of Citigroup’s capital. The government also imposed executive pay restrictions which the bank is eager to dodge fearing the exodus of talented employees.

Even though the bank is optimistic about the plan, offering $15 billion in common stock as early as Thursday, there are some within the bank who question whether the aid should be paid back so soon.

Government officials have also voiced concerns that the US economy might head back into recession causing consumer credit losses.

“The basic objective is to make sure as we exit … we’re leaving the capital position of the institutions stronger, not weaker,” said US Treasury Secretary Timothy Geithner.

US President Barack Obama met with Citigroup executives and 11 other bank officials on Monday to discuss increased lending to small businesses and his administration’s undertaking of financial regulatory reform.

The bank’s shares were down 15 cents to $3.80 on the New York Stock Exchange following the announcement.