The Greek government is considering a second early repayment of bailout loans before the end of 2026 as it seeks to accelerate the reduction of the country’s public debt and further strengthen investor confidence, according to officials familiar with the plans.

The move, worth up to 2.5 billion euros, would follow an early repayment completed on June 15 and would depend on market conditions and the state’s financing needs. Officials said a final decision will hinge on whether Greece returns to international bond markets later this year. If an additional bond issue is deemed unnecessary, the government could instead meet its remaining financing needs through short-term T-bills.

Greece has already raised about 7.75 billion euros from bond markets this year.

After September, authorities are also expected to determine the strategy for additional early repayments from 2027 onward as part of the country’s broader debt management plan.

The government’s objective is to accelerate the decline in the public debt-to-GDP ratio and shed its position as one of the European Union’s most indebted countries. According to the International Monetary Fund’s April Fiscal Monitor, Greece’s debt ratio is projected to fall to 136.9% of GDP in 2026 from 145.7% in 2025, while Italy’s is expected to rise to 138.4%, potentially leaving Greece with a lower debt burden than Italy for the first time in decades.

Early repayments have become a cornerstone of Greece’s debt strategy since its exit from the international bailout programs. The government aims to repay the remaining 31.6 billion euros borrowed under the first Greek rescue package by 2031, a decade earlier than originally scheduled. The strategy is intended to reduce future refinancing needs, lower interest costs and reinforce the country’s standing in international capital markets.

Despite the rapid decline in the debt ratio, interest payments remain comparatively high. According to the Greek Fiscal Council, Greece continues to record the euro area’s second-highest interest burden after Italy, with debt-servicing costs amounting to roughly 3.2% of GDP—approximately equivalent to the country’s defense spending.

International investors have increasingly viewed Greece’s fiscal trajectory as one of the euro area’s strongest turnaround stories. Recent assessments by institutions including the IMF, the European Commission and major credit rating agencies have highlighted the country’s sustained primary budget surpluses, robust economic growth and prudent debt management, factors that have underpinned Greece’s return to investment-grade status and contributed to borrowing costs that now compare favorably with several higher-rated euro-area sovereigns.