Greece is preparing to repay the remainder of its first bailout loans by 2031, a full decade ahead of schedule, according to two senior government officials cited by Reuters.
The move aims to reduce the country’s debt burden and move beyond a decade of economic turmoil.
The repayment will proceed gradually, with annual payments of €5 billion, allowing Greece to retire the loans by 2031 instead of 2041.
Officials said the country wants to shed its reputation as the most heavily indebted member of the European Union.
“The goal is to repay, in full and ten years early, the remaining loans from the first rescue program,” one official said, speaking on condition of anonymity.
The government plans to use a €37 billion cash reserve, stronger-than-expected budget surpluses, and new bond issuances to finance the effort.
Finance Minister Kyriakos Pierrakakis did not comment on the specifics of the repayment timeline but confirmed that early repayment is part of the government’s fiscal strategy.
“We are confident this strategy will allow Greece to shed the label of the EU’s most indebted country in the coming years,” Mr. Pierrakakis said in an interview. “It’s a realistic and achievable goal,” he added.
The move comes as the Greek economy continues to recover from the financial crisis that began in 2009 and triggered years of social unrest, driven by harsh austerity measures.
Greece received three bailout packages totaling €280 billion between 2010 and 2015 from eurozone partners and the International Monetary Fund.
Greece repaid the IMF in 2022 and, by the end of 2024, had paid off €22 billion of the €53 billion owed from the first bailout.
Officials estimate that Greece’s debt will fall to 135% of GDP by 2027, below Italy’s projected debt of 138% in 2026.
Greece has already reduced its debt-to-GDP ratio by more than 50 percentage points since 2020, bringing it to 147% in 2023.
Despite the progress, many Greeks still face challenges with lower wages and inflation.
However, the economy is projected to grow by 2.3% this year—twice the eurozone average—as the country maintains fiscal discipline, even as other major EU economies increase defense budgets and public spending.
The second official noted that for the first time since exiting the third bailout in 2018, Greece’s total debt will decrease in absolute terms in 2024, falling to €365.8 billion.