U.K.'s Chancellor Darling said he maintains his growth forecasts, expecting the U.K. economy to start expanding by the end of the year and to show a pick-up in 2010, speaking in an interview with The Times newspaper. The Treasury's budget estimates, including GDP growth of 1-1.5% next year, has been heavily criticized for being overly optimistic, as most economists expect the economy to just expand marginally next year. Darling also noted that the government is in "no hurry" to sell its holdings in partly-nationalized RBS and Lloyds Banking Group. Yesterday, the FT reported that U.K. Financial Investments, the vehicle that manages the government's banking assets, had begun to talk with sovereign wealth funds and other investors, to sound out interest for the part-nationalized banks, as risk appetite is returning to markets. According to the FT, U.K. Financial Investments could start the selling process within a year. The U.K. government holds 43.5% of Lloyds and 70% of RBS, while mortgage lenders Northern Rock and Bradford & Bingley are fully nationalized
