UK chancellor says Lloyds return to the private sector is imminent

20 June 2013

The UK government is preparing to sell its stake in Lloyds Bank to private investors, chancellor George Osborne announced in his annual Mansion House speech.

Mr Osborne said Lloyds was now in a good position and there was interest coming in from investors. He also said the government was looking into splitting the Royal Bank of Scotland (RBS) in two.

His speech was in line with the findings made by the Banking Standards Commission that said Lloyds, which is 39 per cent owned by the taxpayer, was better placed to return to the private sector and that the good and bad parts of RBS could be split.

Mr Osborne said Lloyds shares were "trading at around the price where selling would reduce the national debt" and said he was now actively considering various options for sales of the shares.

However, he went on to say there was no pre-determined timescale or method of disposal.

By Tony Aynsley

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