Government cuts value of AIB by modest €900m

The Government has cut the value of AIB by a modest €900m, in a move that may signal it still eyes selling a stake in the lender at the first opportunity.

The timing of any shares sales, which could happen as early as May or June, may be influenced by the timing of the leadership contest for Fine Gael and a possible ensuing early election.

The Ireland Strategic Investment Fund holds the stakes Government owns in the banks that were rescued during the financial crisis.