The Treasury Department's refusal to sell its 34% stake in Citigroup Inc. is hampering the banking company's plan to repay the remaining $20 billion of bailout funds, people familiar with the company said.

Executives at New York-based Citi are growing frustrated because they cannot sell stock to raise money for repayment until the Treasury signals when and how it will unload its 7.7 billion shares, said the people, who declined to be named because the matter is under discussion. Investors may be reluctant to buy shares because a Treasury sale could cut the price.

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