BUDGET 2016: Sell-off of ‘valuable’ banks will go to pay debt

The Government’s ownership of Allied Irish Banks (AIB) and Permanent TSB and its 14% stake in Bank of Ireland are all “valuable” assets which will repay taxpayers the huge sums they pumped into the lenders during the crisis, Finance Minister Michael Noonan has pledged.

In recent months, Mr Noonan has indicated that the Government is preparing to sell an initial stake in AIB, the lender that the State effectively owns outright and which received over €20bn during the crisis.

Mr Noonan said yesterday that the proceeds from bank sales will go to pay the national debt.