Greece is set to proceed with another early repayment of intergovernmental loans (GLF) worth 6.9 billion euros in mid-June, targeting obligations dating back to the bailout years. The move, outlined in the government’s Medium-Term Fiscal Plan submitted to the European Commission on April 30, marks a further step toward improving the country’s public debt profile.

The early repayment is expected to generate savings of approximately 90–100 million euros for the Greek state. At the same time, cash reserves stood at 38.9 billion euros at the end of March, underscoring the continued presence of a substantial financial buffer.

Athens is aiming to fully repay the remaining 31.6 billion euros from the first bailout program by 2031—well ahead of the original schedule, which envisaged quarterly instalments between 2029 and 2041. This accelerated timeline is seen as a signal of fiscal discipline, likely to strengthen Greece’s credibility in international markets and potentially lower future borrowing costs.

According to the Medium-Term Plan submitted by the Ministry of National Economy and Finance, Greece’s public debt is projected to decline to 136.8% of GDP by the end of 2026, down from 146.1% in 2025. The next major milestone will be bringing debt below 100% of GDP, now forecast for the 2033–2034 period.

Notably, debt sustainability analyses remain positive even under conservative assumptions of long-term growth between 0.4% and 0.8%.

In a significant development, Greece is also expected to report a lower debt-to-GDP ratio than Italy by the end of 2026, according to the IMF’s latest Fiscal Monitor released Tuesday during its Spring Meetings with the World Bank.

The Fund forecasts Greece’s debt at 136.9% of GDP in 2026, down from 145.7% in 2025, while Italy’s debt is projected to rise to 138.4% from 137.1% last year.

This shift comes earlier than previously anticipated. In its prior report, the IMF had projected that Greece would overtake Italy on this metric only by 2029, rather than as soon as 2026.