Banking Giant AIG announced a plan Thursday to pay back taxpayers for the money they borrowed.

The company reached a deal Thursday to repay the $180 billion in bailouts it received from the government during the credit crisis.

The U.S. Treasury Department will swap AIG debt for company stock then sell those shares over time.

"This is a pivotal milestone as we deliver on our long-standing promise to repay taxpayers," AIG CEO Robert Benmosche said. "We are very pleased that this agreement vastly simplifies current government support of AIG."

This plan will speed up the time it takes to re-pay the debt, and it could also allow taxpayers to recover lost investments.

Treasury Secretary Timothy Geithner expressed satisfaction over AIG's announcement.

"The exit strategy announced today dramatically accelerates the timeline for AIG's repayment and puts taxpayers in a considerably stronger position to recoup our investment in the company," Geithner said.