AIB sale towards the back end of 2015 will cut debt

The Government will use the proceeds of the sale of AIB to pay down debt when it partially offloads the state-owned bank towards the end of 2015 or the start of 2016, according to the Finance Minister Michael Noonan.

Speaking in the Dáil yesterday in response to a question by Fianna Fáil TD, Michael McGrath, Mr Noonan said, “it is the intention of the Government, and there is a Government decision, that it would be used to pay down debt, but if it goes to 2016 it will be for the Government in 2016, whoever composes it, to make the decisions. We are doing the preparatory work now.

“We have a valuation on the bank but the real valuation will be after some shares are sold. If, for example, the State was to sell 25% of it, we would have market valuation on the other 75%, so we would be in a better position. Once there is a market value, we would not be relying on estimates any longer.”