RBS said earlier this month that it planned a return to the private sector next year following a massive restructuring programme - PHOTO : AFP
[LONDON] The International Monetary Fund (IMF) is set to tell the British government to dump its stakes in Royal Bank of Scotland and Lloyds following their bail-out during the financial crisis, The Times reported on Tuesday.
An IMF report on the state of the British economy to be released on Wednesday will call on finance minister George Osborne to dispose of the government's 81 per cent stake in RBS and 39 per cent stake in Lloyds, despite the potential loss to the taxpayer, according to a report on the paper's website.
The report follows a week of meetings with the finance department and the Bank of England, and is expected to conclude that Britain's gloomy economic outlook demands that the stakes be spun off.
It is also likely to urge Osborne to ease his austerity drive, despite the minister's pledge last week to stick by his deficit-slashing measures.
