By Conor Humphries

DUBLIN (Reuters – Ireland has announced that over the next six month, it will be removing 71% from Allied Irish Banks. This is in line with its plan to reduce state ownership of its biggest banks.

While the Irish Department of Finance has not yet stated how much of the AIB it will sell, the Department of Finance indicated that the sale would probably be slow than at Bank of Ireland where its holdings have been reduced to 9.3%, from 13.9%, since June.

After a decade-long property crash in Ireland, 64 billion euros ($72billion) was pumped into Ireland’s banks. The Bank of Ireland is the only bank to remain independent of majority state ownership.

Paschal Donohoe, Finance Minister said that although I expect share sales to slow down than at Bank of Ireland’s pace, it was important that the country make more progress in what is a long-term journey.

Bank of Ireland’s sales marked the first sale of any state bank shares since 2017. The bank also holds 75% of Permanent TSB (Ireland’s other retail bank).

Colin Hunt, chief executive of AIB described the decision as “an important step in the process to return the state’s investment in Group”

The shares of AIB dropped 3% by 0835 while the larger Irish stock exchange index had increased 1%

In June, the government stated that it would reduce its Bank of Ireland stake. The plan was to be ended in January. However, it extended it to May 2022 last month after it sold 4.6% and made 249m euros.

According to a statement by the finance ministry, less than 15% of total expected trading volume for AIB shares will be realized through the sale of AIB share, which will take place starting January.

It added that “The minister will not close any other sales options, such as accelerated bookbuilds and directed buybacks, should they arise.”

($1 = 0.8856 euros)