The Government of UK has revealed plans to sell of its remaining 62.4% stake in Royal Bank of Scotland (RBS) by 2024.
In the latest budget document, Britain’s budget watchdog, The Office for Budget Responsibility, said: “The government will keep all disposal options under review and, as with previous disposal programmes, expects larger disposal values in later years when increased liquidity in the shares should enable higher volumes to be sold.”
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The government hopes to raise nearly £20.6bn by offloading its remaining shares over the next five years.
However, the government is not planning to sell anymore stake in the bank this year, the document added.
Citing the document, Reuters reported that the government plans to offload RBS shares worth £3.6bn in the 2019-20, followed by £2.5bn pounds in 2020-21, and £3.8bn pounds in 2021-22.
The government would sell £4.7bn worth of RBS stake in 2022-23 and £6bn in 2023-24.
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By GlobalDataTo recoup the taxpayers’ money, the government started selling the stake of RBS. In 2015, the government sold 5.4% stake for £2.08bn. Almost three years later in June 2018, the government offloaded additional 7.7% stake for £2.51bn.
In November last year, the government revealed that it faces a £26.2bn loss on its RBS stake, down from the previous prediction of £29.2bn.
At the height of financial crisis in 2008, the British government saved RBS by infusing £45.5bn capital.
