Greece has announced its intention to accelerate the repayment of €5 billion in bailout loans maturing between 2033 and 2042. Prime Minister Kyriakos Mitsotakis made the announcement at the Future of Greek Finance Symposium in Athens, emphasizing the country’s commitment to fiscal discipline and economic stability.
“We’ve been ruthlessly focused on fiscal discipline,” Mitsotakis stated. “It’s an indication of the confidence we have in our public finances.”
This initiative reflects the progress Greece has made since its near-collapse during the eurozone debt crisis over a decade ago. The country’s economy has consistently outperformed the euro area since the pandemic and is projected to maintain this trend through 2025 and 2026.
During its financial crisis, Greece faced unemployment rates nearing 30%. Today, that figure has fallen to an estimated 10.5% for 2024, with projections suggesting it could drop to 8.5% by 2028. Despite ongoing cost-of-living challenges, Greece has increased its minimum wage from €650 in 2019 to €830 and reduced or eliminated many crisis-era taxes.
The country’s debt trajectory is also improving significantly. Greece’s debt-to-GDP ratio, which hit a record 207% in 2020, is expected to fall to just under 153% this year. Finance Minister Kostis Hatzidakis has outlined a plan to reduce the ratio by an additional 20 percentage points by 2028 through a combination of high primary surpluses, early debt repayments, privatization proceeds, and efforts to combat the shadow economy.
This will not be Greece’s first early repayment of obligations. In December, the government will complete the repayment of €7.9 billion from the Greek Loan Facility. However, the upcoming €5 billion repayment will mark the first time Greece targets long-term debt for early redemption.
The country’s economic revival has been buoyed by robust investor interest in Greek bonds. With the European Central Bank reducing interest rates, Greek bond yields have remained competitive, with the yield premium over German bonds at its lowest since 2008.
Regaining investment-grade status in 2023 was another milestone for Greece, reflecting its improved fiscal and economic conditions. The European Commission forecasts Greece’s GDP growth at 2.3% in 2025 and 2.2% in 2026, outpacing the euro area averages of 1.3% and 1.6%, respectively.
By addressing its debt proactively, Greece continues to strengthen its position within the euro area, balancing economic reforms with fiscal responsibility to ensure long-term financial stability.
