Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

The position of the Government in regard to the State's shareholdings in the banking sector is very clear. These were investments the State had to make during the banking crisis, and it is the Government's intention that the State will exit these investments in a measured and careful manner. I have been clear in stating that my primary objective in the disposal of these assets will be recovering the maximum amount of money for the Irish taxpayer.

Clearly, in order for us to proceed with the sale of any of our banking assets, we would need to be satisfied that the market is prepared to put a fair and reasonable value on the relevant business, bearing in mind its current performance, its future prospects and the outlook for the Irish economy. Officials in my Department continue to monitor market conditions and the performance of banking equities with a view to planning appropriate exit strategies, consistent with what is set out in A Programme for a Partnership Government.

In regard to the individual assets, I have indicated that an IPO is the optimal route to recouping value from our investment in AIB with the earliest possible IPO window being the second quarter of 2017. Indeed, officials in my Department, along with our independent financial adviser, Rothschild, have done considerable preparatory work in this regard. In December of last year, following a competitive procurement process, three firms were appointed to act as joint global co-ordinators to lead a selling syndicate in preparation for a possible IPO. The firms have been appointed for an 18 month period and additional firms will be appointed to fill out the syndicate at an appropriate future date. The appointment of the firms as advisers does not signal any intention or obligation for us to proceed with a transaction, which will be subject to a number of factors, including favourable market conditions. AIB is due to publish its 2016 financial results on Thursday, 2 March 2017 and we will assess the market reaction. Clearly, AIB remains our immediate priority given its size, however we continue to keep disposal strategies in relation to both Bank of Ireland and Permanent TSB under review.

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