Greece plans early repayment of €8 billion of bailout loans
Greece plans to repay bailout loans worth 8 billion euros ahead of schedule, Prime Minister Kyriakos Mitsotakis said during an interview with Bloomberg TV on Wednesday, pointing to the country’s recovery from a crippling 10-year debt crisis.
The early repayment, covering loan amortizations from 2026 to 2028, marks the third accelerated tranche since Greece’s first bailout in 2010 and the largest to date.
“We’ve achieved a lot since our re-election,” Mitsotakis said, referring to the national polls of 2023, which gave his New Democracy government a second term in office.
He highlighted the move as a strong signal to financial markets of Greece’s economic recovery. Despite lowering its 2024 growth target to 2.5% from 2.9%, Greece is still outperforming average EU growth forecasts, he noted.
Mitsotakis, an economist himself, noted a strong market appetite for Greek assets, saying this reflects confidence in the government’s stability and long-term economic plans.
Under his leadership, he noted, Greece has regained investment-grade status, and even though debt remains high, it is expected to decline to 152.7% of GDP this year from 207% in 2020.
The early repayment will be funded partly by Greece’s cash buffer. The government aims for a primary surplus of 2.1% of GDP this year and in 2025. Additionally, Greece will continue to push privatization initiatives, Mitsotakis said, including the sale of stakes in major banks and ports.
