8th Jul 2015 13:05
LONDON (Alliance News) - The UK government can raise at least GBP2 billion by selling part of its shareholding in Royal Bank of Scotland Group PLC in the current fiscal year, the body responsible for managing the taxpayer's stakes in bailed-out banks has said.
James Leigh-Pemberton, the executive chairman of UK Financial Investments, wrote to Chancellor George Osborne on Wednesday to say that a minimum of GBP2 billion can be raised in the 2015-16 fiscal year while delivering value to taxpayers.
The UK still owns about 80% of RBS after pumping GBP45.5 billion into the bank in the global financial crisis of 2007-09.
Leigh-Pemberton said he thinks at least GBP25 billion can be raised by selling more than 75% of the government's stake in RBS at the current market price between now and May 2020, so long as market conditions are supportive.
"UKFI will continue to keep market conditions under review and assess options for future sales over the coming months," Leigh-Pemberton wrote.
The UKFI executive chairman said RBS is continuing to make "good progress" in its strategy of becoming a stronger, simpler bank focused on lending in the UK.
RBS shares were down 0.2% at 336.20 pence on Wednesday afternoon.
https://www.gov.uk/government/publications/letter-to-the-chancellor-regarding-the-decision-on-the-sale-of-government-shares-in-the-royal-bank-of-scotland-group
By Samuel Agini; [email protected]; @samuelagini
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