Britain is planning to sell half its stake in Royal Bank of Scotland, worth £16 billion, within two years of a possible first sale in September.
This is according to people with knowledge of what the UK government is thinking.
UK Finance Minister George Osborne said last month he wanted to start selling the government's £32 billion stake in RBS in the coming months, with initial sales likely to result in a loss for taxpayers.
The aggressive plan for Britain's biggest ever privatisation means the shares will be sold at a faster rate than anticipated.
It also makes it likely that the government will make a substantial loss on the initial sales of its shares.
Final decisions on the sale process have yet to be made and progress will depend upon RBS's performance, ongoing investigations into past misconduct, and market conditions, sources told Reuters today.
Britain pumped £45.8 billion into RBS to rescue it during the 2007-9 financial crisis, leaving it with a 78% stake.
The UK govt is sitting on a loss of £14 billion based on current share prices.
RBS Chairman Philip Hampton, who is leaving the bank later this year, said in June he expected it to take several years for the government to complete the sale while former chief executive Stephen Hester said it could take a decade.
Although Osborne had been reluctant to sell shares in RBS at a loss, the bank's improving performance has persuaded him now is the time to sell.
RBS owns Ulster Bank here.
