By Jason Theodorou
Royal Bank of Scotland plans to offload up to £3 billion of property loans, as it continues to discard non-core assets. In partnership with Lazard, the bank has been planning to offload real estate debt.
Last week RBS gave details to analysts about the schedule they were working to. RBS aims to reduce non-core assets from £201 billion at the end of 2009, to £143 billion at the end of 2010. The bank aims to reduce these assets by £20 - 40 billion by the end of 2013.
RBS was part-nationalised at the peak of the recession, and as a condition of this deal the European Union ruled that the bank must sell a series of assets in return for state assistance. RBS has sold over 20 businesses in the last 14 months.
Chief executive Stephen Hester has told a German paper that the bank will create the conditions for the UK Government to sell its 83% share in the bank as early as 2011. Mr. Hester has a five year plan for jettisoning parts of the business which the bank can no longer support.
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