The issue of the state retaining its shareholdings in the Irish banks has long been controversial. Given its investment in the institutions effectively constitutes state aid, the state is therefore required to sell its stakes at some point. However, the government has made it clear it will not sell unless it can achieve the right price, as otherwise it would be forced to crystallise hefty losses. It is a tense debate. Clearly, the state is not in the mood to be a panicked seller. However, the very presence of the state on the share register dampens investor sentiment and drags…

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