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UK government sells 1% stake in Lloyds bank, extends trading plan

The UK government has said that it has extended the trading plan for the sale of the Lloyds Banking Group by six months.

lloyds

The announcement followed the previous sale of 1% of the bank’s share.

Recently, the government revealed that it has sold around $779m worth of its shares in the bank, bringing its stake to less than 20%.

With the recent sale, the government has been able to recover around £3.5bn bringing the total recovery from Lloyds to over £10.5bn. Around 13.56 billion shares now belong to the government instead of the previous 14.22 billion shares.

Chancellor George Osborne said: "The trading plan has been a huge success, with almost £3.5bn raised for the taxpayer so far. This means we have now recovered over £10.5bn in total, more than half of the taxpayers’ money put into Lloyds, and we now own under 19% of the bank.

"But we’re determined to get on with the job of returning Lloyds to private ownership. That’s why I’m extending the plan for six months so that we can make even more progress in returning money to the taxpayer and paying down the national debt."

With the extension in the date, the trading plan will now end on 31 December 2015 instead of 30 June.

The UK government had acquired around 39% stake in the Lloyds bank after the 2008 financial crisis to bail out the financial institute. However, the government started selling its stake in the bank in late 2013.


Image: The trading plan will now end on 31 December 2015. Photo: courtesy of HM Treasury/Crown copyright.