Greece completed an early repayment of €5.29 billion in loans from its first 2010 bailout programme, highlighting its economic turnaround since the debt crisis hit the country.
At the same time, Greek bonds have gained international popularity.
The payment, executed today, targeted bilateral loans under the Greek Loan Facility (GLF), originally totalling €52.9 billion from 14 eurozone countries, of which €31.6 billion remained outstanding prior to this transaction.
It was funded from Greece’s special cash reserve account, established at the end of its third adjustment programme.
Approval came from the boards of the European Stability Mechanism (ESM) and European Financial Stability Facility (EFSF) earlier in December, waiving proportional repayment obligations on other loans.
ESM managing director Pierre Gramegna stated: “Greece continues to make significant progress in strengthening its economy. This additional early repayment of the GLF loan sends another positive signal to financial markets, improves Greece’s debt structure and reflects the country’s improving fiscal position.”
The move reduces public debt by approximately 2.2 per cent of GDP and is projected to save around €1.6 billion in interest payments through 2041. These GLF loans carry variable interest rates, exposing Greece to higher servicing costs in rising rate environments.
This repayment forms part of a broader strategy to clear remaining GLF obligations by 2031, a decade ahead of original maturities extending to 2041. Including prior early repayments and full clearance of IMF loans, Greece has prepaid approximately €29 billion in bailout debt.
Concurrently, Greek Government bonds have attracted strong international investor interest amid ongoing debt reduction efforts. Foreign allocations to Greek bonds and Treasury bills reached €7.5 billion in the first half of 2025.
Analysts from major institutions remain positive.
Bank of America has described Greek sovereign and corporate bonds as among Europe’s strongest performers, supported by robust growth and improving fiscal metrics.
JP Morgan identifies Greek bonds as a top pick for 2026, citing macroeconomic fundamentals, political stability and limited refinancing needs.
Rating agencies project Greece to have achieved the largest public debt reduction in Europe from 2019 to 2026, with the debt-to-GDP ratio potentially falling below that of Italy and France by the end of the decade.
Further upgrades are anticipated in 2025 and 2026, reinforcing market confidence in Greece’s fiscal trajectory.
In 2023, Prime Minister Kyriakos Mitsotakis committed to early debt repayment to reduce Greece’s public debt, which stands at around €403.2 billion as of June 2025 — 145.9 per cent of GDP.
This ratio is expected to decline, though, with projections showing a drop to 138.2 per cent of GDP in 2026 and below 120 per cent by 2029.
Finance minister Kyriakos Pierrakakis said the goal was “no longer be Europe’s most indebted country in the coming years”.
