Finance minister had option to pull AIB buyback if share price rose

Department of Finance officials recommended the buyback proceed but said finance minister Paschal Donohoe was not bound by it if there was a dramatic rise in the value of the shares following trading update by AIB

The value of AIB stock later rallied and the buyback went ahead, bringing State ownership in the bank ever closer to an exit.

Department of Finance officials told finance minister Paschal Donohoe he could pull the plug on a deal for AIB to buy back €1.2bn in shares if there were any sudden changes in the stock price.

In a briefing for the minister in March, Mr Donohoe was told AIB was looking for an early decision on whether it could go ahead with a deal.