By Daniel Grote of Citywire
The government has said it intends to launch the sale of its remaining stake in Lloyds (LLOY +
) to the public by the end of the year, having been forced to postpone the offer following the market turbulence at the beginning of the year.
The government had intended to sell £2 billion of its stake in the bank acquired during the financial crisis bailout to private investors in the spring.
But after postponing the sale in January, exchequer secretary to the Treasury Harriett Baldwin said she expected the sale to take place before the end of the year, as the government banked a £130 million dividend payment from the bank.
‘The £130 million we’ve received today marks another milestone in the government’s plan to recover the money taxpayers were forced to put into Lloyds during the financial crisis,’ she said.
‘The government has already recovered over 80% of its original investment in Lloyds and today’s dividend payment takes the amount we’ve recovered from the bank to over £16.8 billion.
‘I am determined to build on this success by making Lloyds shares available to the public this year, so that we can build a share-owning democracy and continue to reduce our national debt.’