The Irish State's recent sale of its remaining stake in AIB marks a significant shift towards privatizing the banking sector, recouping €19.5 billion from a €22 billion investment made during the 2008 banking crisis. Finance Minister Paschal Donohoe emphasized this development as vital for government policy. Although AIB's share price reached a crucial threshold for the buyback, the limits on executive pay may now be reassessed. This move reflects both market confidence and a complex balance of fiscal recovery and regulatory oversight in Ireland's banking landscape.
The latest deal means about €19.5bn of that cost has been recouped for taxpayers, in a mix of share sales, interest on rescue loans and other fees and levies.
Finance minister Paschal Donohoe said: 'This is an important milestone in delivering on the government's policy of returning the banking sector to private ownership.'
AIB's share price closed just 6c below the €6.26 'magic number' in the second week of May, paving the way for directors to give the buyback their blessing.
The State's exit from AIB will raise questions about the future of the €500,000 limit on executive pay at the bank.
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