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Greece came close to leaving the eurozone at the height of its 2009-2018 economic crisis and carried the highest public debt burden in the eurozone for the past two decades. Its debt ratio has since fallen by more than 60 percentage points, reaching 145.9% of GDP last year. It is expected to fall below Italy\u2019s ratio this year, with Greece forecast to reach 136.8% of GDP.<\/p>\n
Greece accelerates first bailout loan repayments<\/span><\/em><\/p>\n Athens announced last year that it planned to repay by 2031 the bilateral loans that eurozone countries provided in 2010 through the Greek Loan Facility.<\/p>\n The facility formed part of the first of Greece\u2019s three bailout programmes, which provided around \u20ac289 billion in total assistance. Greece had planned to complete repayment 10 years before the loans\u2019 final maturity, through annual instalments of around \u20ac5 billion.<\/p>\n Earlier this year, however, Greece made a larger-than-planned repayment of \u20ac6.9 billion, reducing the outstanding balance to \u20ac19.5 billion.<\/p>\n \u201cIt is very likely that we will fully repay the first bailout programme loans by 2030 or even by 2029, instead of 2031,\u201d one official told Reuters.<\/p>\n A second source confirmed that Greece expects to complete the repayment during 2029-2030 and said Athens could accelerate early debt repayments further in the coming years if conditions allow.<\/p>\n Strong fiscal performance gives Athens more room<\/span><\/em><\/p>\n Stronger-than-expected fiscal performance and cash reserves of around \u20ac32 billion have given the government greater flexibility to make larger early repayments.<\/p>\n Economic growth and efforts to combat tax evasion have helped strengthen government finances. The Greek economy is growing at an annual rate of around 2%, outpacing the eurozone average.<\/p>\n Greece expects to record a primary surplus of around 4% of GDP this year, almost twice its original forecast.<\/p>\n The first official said Greece would repay at least \u20ac5.1 billion early in 2027. The official also said Athens expects a credit-rating upgrade after the parliamentary elections expected next year.<\/p>\n S&P, Fitch and DBRS Morningstar currently rate Greek debt at BBB, while Moody\u2019s rates it Baa3.<\/p>\n Greece plans further bond issues<\/span><\/em><\/p>\n Greece already borrows at a lower cost than Italy and France and plans to raise between \u20ac7 billion and \u20ac8 billion next year through new benchmark bond issues and the reopening of existing securities.<\/p>\n The planned issuance will include a 10-year bond, alongside reissues of existing government bonds.<\/p>\n The accelerated repayment strategy reflects Greece\u2019s broader effort to reduce its debt burden and strengthen its position in financial markets after more than a decade of sovereign-debt crisis.<\/p>\n \u00a0<\/p>\n