Greece is proceeding with a new early repayment of intergovernmental loans originating from its first bailout program, following the approval of the European Stability Mechanism (ESM) and the European Financial Stability Facility (EFSF). The repayment is scheduled for Monday, Dec. 15, and amounts to 5.287 billion euros.

The operation related to the European loans under the Greek Loan Facility (GLF), which carry variable interest rates and were originally set to mature between 2033 and 2041. By settling these obligations ahead of schedule, Greece is accelerating the reduction of its public debt while at the same time limiting its exposure to the risk of future interest rate increases.

The benefits are immediate and tangible. The early repayment is expected to relieve the state budget and taxpayers of interest payments totaling 1.6 billion euros. Under the original repayment timetable, these interest costs would have been incurred from 2026 onwards.

Athens’ broader objective is to fully repay its bailout-era loans by 2031—roughly a decade earlier than their final contractual maturity. This strategy is designed to provide breathing space for public finances, improving both the absolute level of public debt and its ratio to GDP.

According to official projections, general government debt is expected to stand at 145.9% of GDP at the end of 2025, decline to 138.2% in 2026, and fall below 120% of GDP by 2029—approaching levels seen in countries such as France.

The latest move forms part of a broader strategy to lower borrowing costs and improve the structure of public debt. Between 2022 and 2024, Greece carried out three early repayments of European loans totaling 15.9 billion euros. With the current operation, that figure rises to 20.1 billion euros.

In parallel, 7.9 billion euros was used to prepay loans to the International Monetary Fund, fully eliminating Greece’s outstanding debt to the IMF.