Following the completion of the latest deal, the State will have recovered an estimated €12.6 billion of AIB’s €20.8 billion crisis-era rescue, including proceeds from the sale of shares, redemption of bailout bonds, dividends, interest and guarantee fees. Its remaining stake in the bank is valued at about €4.7 billion.
AIB’s return to majority private ownership follows on from the State selling its remaining shares in Bank of Ireland last September. Permanent TSB , the only other continuing lender in the Republic, continues to be 57.4 per cent owned by taxpayers. The Government moved late last year to lift salary restrictions at Bank of Ireland and resolved to do the same at AIB and PTSB once its holdings in each fell to an unspecified “appropriate level”.
However, there is no sign that the Minister plans to lift the pay restriction in the immediate future. “As previously indicated, the Minister for Finance will review further changes to the remuneration restrictions for AIB and PTSB at the appropriate time,” a spokesman for the Department said. “There is no obligation do anything further on remuneration once the State’s shareholding in AIB goes under 50 per cent.”