Govt 'may look to markets to recoup stake in banks'

The Junior Finance Minister Simon Harris has denied the Government has given up on getting money from Europe to help cover the cost of bailing out our banks.

Hopes were raised following a deal reached in June 2012.

However, advisors have now been appointed to look at options for the State's stake in AIB, amid speculation that part of it could be sold later this year.

Minister Michael Noonan believes the State could ultimately get back nearly €29.5bn that it pumped into AIB, Bank of Ireland and Permanent TSB.

Junior Minister Harris has insisted that the Government will focus on getting the best deal for the taxpayer, and that may not be through a European payout.

Mr Harris said: "Are we meant to be in the business of trying to get some sort of paper victory if that isn't the best deal available to the taxpayer?

"ESM and restrospective recapitalisation always involved the European Institutions taking a stake in our banks.

"What we will now have to determine as a government, and the process begins today in terms of the appointment of advisors, is can we get better value for a stake on the market, or from the European institutions."