UK government to sell remaining shares in RBS by 2024
The UK Government has revealed plans to sell its remaining stake in RBS by 2024 following its bailout of the bank a decade ago.
The Government, which rescued Britain's fourth biggest bank with a £45.5bn bailout in 2008, expects to raise £20.6bn from the sale, the Office for Budget Responsibility (OBR) said.
The OBR said the Government's current 62.3 per cent stake was worth £18.7bn, having sold £2.5bn worth of shares in June.
Britain's Budget watchdog said it was unlikely there would be any further shares sales until 2019-20.
Earlier this month the government pocketed £150m from RBS as it paid its first dividend since the bailout.
In September RBS chairman Sir Howard Davies admitted it was “unlikely” the government would recoup all of the £45.5bn it injected into the bank in 2008.
He said the bank had lost £130bn over the decade since and incurred restructuring costs of £15bn.
The government confirmed the exit strategy in its Budget document on Monday.
“It remains the government's objective to return RBS fully to the private sector when it represents value for money to do so and market conditions allow.
“Over the past year RBS has made significant further progress on resolving its legacy issues.”
It added: “The government now intends to undertake a full disposal of the RBS shareholding by 2023/24 subject to market conditions and achieving value for money.”