Greece has secured approval to repay €5.29 billion in high-interest bailout loans early, a move that allows Athens to target its most expensive debt without triggering mandatory repayments to other European creditors.
The European Stability Mechanism (ESM) and the European Financial Stability Facility (EFSF) waived a standing rule that would have required Greece to make simultaneous, proportional repayments to all institutions.
The waiver permits the government to focus exclusively on clearing the costly Greek Loan Facility (GLF) debt—the bilateral package that formed the backbone of the country’s first bailout in 2010.
The decision also unlocks Greece’s ability to utilize its state liquidity buffer, or "cash cushion," to finance the transaction.
"Greece continues to make remarkable progress in strengthening its economy," said Pierre Gramegna, the ESM managing director. "This additional early repayment of GLF debt sends another positive signal to financial markets… and reflects the country’s improved fiscal position."
The government formally requested to discharge the loans, which mature between 2033 and 2041, to reduce servicing costs.
The GLF originally totaled €52.9 billion in loans from 14 eurozone states; €31.6 billion currently remains outstanding.
The move marks the latest step in Greece’s aggressive debt management strategy.
Athens fully repaid its International Monetary Fund loans two years ahead of schedule in 2022 and completed a previous early repayment of GLF debt in 2024.
Mr. Gramegna noted that the waiver improves the structure of Greece's public debt, further strengthening investor confidence more than a decade after the financial crisis.
By Yiorgos Pappous