The State will not be selling its regular shares in AIB until after the general election.

The Finance Minister Michael Noonan says he does not want to turn the bank into an election issue, in the interest of taxpayers.

AIB today got European approval to repay up to €4bn in taxpayer funds invested throughout the bailout.

But Minister Noonan says the rest of the money will have to wait until after the election:

Mr Noonan earlier said the money will go towards repaying the national debt instead of day-to-day spending.

This morning, the EU bank regulator gave permission for the bank to start repaying some of its emergency aid - ahead of an eventual return to private ownership.

The bank will repay €1.7bn through a capital reorganisation which will partially redeem preference shares created in 2009.

It also plans to use "contingent capital notes" - a form of finance which was provided to the bank during Ireland's financial crisis - to repay €1.6bn.

"The capital reorganisation will support a sustainable and compliant regulatory capital structure underpinning our business plans and positions the group to repay capital to the State and return to private ownership over time," CEO Bernard Byrne said in a statement.

"The approval of these capital actions by the SSM represents another key milestone in the transformation of AIB", he added.

These actions are subject to approval at an upcoming extraordinary general meeting of its shareholders.

However this will be a formality, as the bank is 99% owned by the State.

Minister Noonan says the proceeds will not be going towards everyday spending.