THE timing of the Irish Government’s decision to sell part of its 13.9 per cent stake in Bank of Ireland has been queried by the Financial Services Union (FSU).
Irish Finance Minister Paschal Donohoe announced on Wednesday morning that Citigroup will put the shares into the market over a six-month period, as the State begins the final phase of its exit from the bailed-out-lender.
Bank of Ireland’s share price dipped by around five percent in reaction to the news yesterday morning, knocking around €36 million (£30.9m) off the value of the government’s stake.
The Department of Finance in Dublin has said that the shares will not be sold below a certain price per share.
“When all cashflows are taken into account the taxpayer has already recorded a surplus on its investment in and support for the bank, even before the sales of these shares are accounted for,” said Mr Donohoe yesterday.
“A trading plan enables the State to sell down its shares in a low cost carefully controlled manner while avoiding the need to try to time our disposals with market conditions.”
But FSU general secretary John O’Connell questioned why the Irish Government was pressing ahead with the sale ahead of a planned review of the Republic’s banking sector.
“Change is taking place in the sector at a rapid pace and there is common agreement that a strategic discussion needs to happen involving all stakeholders on the future of Banking in Ireland,” he said.
“The sale of the state shareholding in Bank of Ireland should have been part of that discussion and not taken prior to that review taking place.”
