Government plans to sell 25% AIB stake this year for about €3bn

The State could be set for a €3bn payoff later this year, under plans to sell some of its stake in AIB.

Minister for Finance Michael Noonan said the Government was looking at a date in May or June to sell off some of its shareholding.

Last year the State's total shareholding in the bank was valued at more than €12bn.

Around a quarter of that could be converted into cash in May or June, under plans confirmed by the Minister.

He said: "The banks have dealt with over 50% of their non-performing loans now. All the banks are trading profitably and we're set to organise an IPO (Initial public offering) in May or June to sell around 25% of it."