State’s AIB Stake Drops Below 31%

The Irish government’s share in AIB has dropped to slightly below 31%. This decrease comes as the government steadily supplies the market with stock. AIB revealed on Tuesday that the Ireland Strategic Investment Fund (ISIF), responsible for managing these shares for Finance Minister Michael McGrath, has cut down its ownership from 31.98% to 30.95%.

Since the beginning of the year, the government’s stake in AIB has witnessed a decline from 71%, achieved through a combination of dealing in smaller batches, selling around 5% blocks of stock, and participation in the bank’s share buybacks.

The speed of this process increased in May this year when AIB repurchased and withdrew shares worth €1 billion from the government. The State has been able to regain approximately €15.1 billion from AIB following a €20.8 billion rescue during the financial crisis. The residual stake is valued around €3.71 billion, putting taxpayers at a roughly €2 billion deficit regarding their investment, considering the cash inflows and outflows.

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