IMF urges UK government to sell stakes in Lloyds and RBS

22 May 2013

The International Monetary Fund (IMF) is urging the UK Treasury to accelerate its disposal of the £65 billion stakes in two of the UK's biggest banks.

Currently, the UK taxpayer owns large stakes in both Lloyds and the Royal Bank of Scotland (RBS) and the IMF believes public ownership is no longer in the best interests of the economic recovery.

The recommendations from the IMF will come as a boost to chancellor George Osborne as he attempts to win public support in selling off the taxpayer's 81 per cent stake in RBS and 39 per cent stake in Lloyds.

Lloyds shares recently reached break even levels, while RBS has said it expects to return to the private sector as early as 2014.

Some members of the parliamentary commission on banking standards would like to see more money put into RBS to fully nationalise it so it can be split into a good and bad bank before being sold back into the private sector.

Mr Osborne is said to be against this motion.

By Asim Shah

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development