Greece to Repay First Bailout Loans a Decade Early, Fin Min Announces

Greece is planning to repay its loans from the first bailout program ten years ahead of schedule, Minister of National Economy and Finance Kyriakos Pierrakakis announced during a Bloomberg TV interview from Brussels on Monday, May 12. The early repayment is expected to alleviate the country’s debt burden in the coming years.

“We should have completely put it behind us by 2031,” Pierrakakis stated. He emphasized that fiscal prudence is not just a policy choice—it is a ‘regime,’ underscoring the government’s commitment to economic discipline.

Under the current repayment schedule, the final installment of this series of loans was set for 2041. However, the Greek government now aims to clear the entire debt by 2031, Pierrakakis explained.

As of today, Greece owes 31.6 billion euros of the original 52.9 billion euros loaned by Eurozone countries in 2010 under the Greek Loan Facility (GLF). Following three bailout packages, Greece now seeks early repayment after surpassing fiscal targets, aiming to ease obligations from 2032 onward.

Public Debt Reduction

In 2018, the Eurozone rescue fund approved a series of debt relief measures for Greece, which included postponing interest and amortization payments. This agreement meant that the country would not begin repaying the majority of the loans disbursed under the second bailout package until 2033. The early repayment of GLF loans will smooth out Greece’s obligations even further.

Greece’s public debt fell to 153.6% of GDP in 2024, beating its target of 154%. This year, it is expected to drop below 150%.

The rapid reduction in Greece’s debt burden, along with a strong economy and budget outperformance, has been instrumental in the country regaining its investment-grade status. Greece was one of only six European Union countries to record a budget surplus in 2024, a surprising achievement largely attributed to government efforts to combat tax evasion.

“We do not intend to pass the bill to the next generation,” Pierrakakis declared, emphasizing Greece’s commitment to fiscal responsibility. The country plans to continue generating surpluses, and the minister expects the primary surplus—which excludes interest payments—to reach 3.2% of GDP in 2025.