NEW YORK — Citigroup said this morning it is repaying $20 billion in bailout money it received from the Treasury Department to reduce government influence over the banking giant.

The government also will sell its stake in the company.

The New York-based bank was among the hardest hit by the credit crisis and rising loan defaults and got one of the largest bailouts of any banks during the financial crisis. The government gave it $45 billion in loans and agreed to protect losses on nearly $300 billion in risky investments.

Citi is selling $20.5 billion in stock and debt to repay the government. It only has to pay back $20 billion because the remaining $25 billion was converted into a 34 percent ownership stake in the bank earlier this year.

The government plans to sell that entire stake, which has risen in value by more than 20 percent, during the next year.

After repaying the funds, Citi will no longer face heavy scrutiny and restrictions from the government, including caps on executive pay and dividends.