The official supervising the government's bailout investment in Citigroup said Thursday that the government intends to sell its holdings in the bank in a responsible manner within the next year.

The U.S., which currently holds a 27 percent equity stake in the bank, put off a plan to sell its stake last year after insufficient demand.

Herb Allison, the Assistant Secretary of the Office of Financial Stability, was testifying before the Congressional Oversight Panel.

He said the he had no reason to expect and have no plans to make further investments in Citigroup.

They'll be able to sell after March 16 and they've announced publically that they intend to sell within the next 12 months, Citigroup CEO Vikram Pandit said during testimony.

Allison and Citigroup were testifying before the panel created by Congress to review the state of financial markets and the regulatory system.

In mid-day trading, shares were up 1.47 percent to trade at $3.45 per share.

Last updated at 12:43 p.m.