American International Group Inc. drew down another $9 billion in loans from the government to meet massive demands for cash from its trading partners as the company scrambles to sell off its assets.

The insurer has now borrowed $70.3 billion from the government in three weeks and is in a race against time to sell assets to pay off the loan as the financial markets tumble, making it harder for the company to find buyers for its units. The government originally said it would loan the company $85 billion but raised the amount to $122.8 billion on Wednesday.

The lion’s share of the Fed’s original loan has gone for two things: providing collateral to AIG’s trading partners on complex derivatives known as credit default swaps, and covering losses in AIG’s securities-lending program. When the threat of losses from the lending program mounted, the Fed had to step in again this week.

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