British government reduces stake in Lloyds to below 9 pct

LONDON, Oct (Shenzhen: 000069.SZ - news) 27 (Reuters) - The British government said on Thursday it had reduced its stake in Lloyds Banking Group (Other OTC: LLOBF - news) to just below 9 percent, its first sale since the relaunch of a trading plan that was shelved almost a year ago because of market turbulence.

"Selling our shares in Lloyds and making sure that we get back all the cash taxpayers injected into it during the financial crisis is one of my top priorities as Chancellor," Finance Minister Philip Hammond said in a statement.

Earlier this month, UK Financial Investments Limited (UKFI), which manages the government's stake in the bailed-out bank, said it would resume share sales in a bid to return Lloyds to full private ownership over the next 12 months.

Lloyds was rescued with a 20.5 billion pound ($25.05 billion) taxpayer-funded bailout during the 2007-09 financial crisis, leaving the state holding 43 percent.

So far the government has recouped about 17 billion pounds after the finance ministry began selling off its stake in 2013. ($1 = 0.8183 pounds) (Reporting By Andrew MacAskill, editing by Sinead Cruise)