British government may fast-track the sale of its £35bn stake in bailed out lenders Royal Bank of Scotland (RBS) and Lloyds following the victory of David Cameron’s Conservative party in the recent election.
Media reports suggest that Finance Minister George Osborne is open to the plan of beginning to sell RBS shares at a loss later this year.
The government has already sold nearly half of its 41% stake in Lloyds but has yet to start selling its 80% stake in RBS, which received a £45.2bn state bailout.
Finance ministry officials are expected to announce the decision to lower the government’s stake in Lloyds from 21% to less than 20% as early as this week.
In January, Osborne said that the party would review what to do with the government’s RBS stake early in the new parliament.