Greece will make a €6.9 billion early debt repayment in June that will push its debt-to-GDP ratio below Italy's for the first time, ending its status as the Eurozone's most indebted nation relative to economic output — a symbolic milestone that carries significant weight for a country that needed three international bailouts to avoid bankruptcy.
Government Spokesman Pavlos Marinakis confirmed the June timeline for the transaction, which clears a substantial tranche of Greece's first bailout loan from 2010.
The payment will bring the country's debt-to-GDP ratio to 136.8 percent, edging below Italy's projected 138.6 percent, according to European Union forecasts.
Finance Minister Kostis Hatzidakis said the repayment represents a 2.5 percent reduction in national GDP and brings total early repayments of the original €52.3 billion Greek Loan Facility to approximately €28 billion.
"This early repayment sends an unequivocal message of fiscal strength to global markets and credit rating agencies," Mr. Hatzidakis said.
Athens is targeting a second early repayment later this year, aimed at loans held by the European Financial Stability Facility.
The government's overall debt trajectory aims for 130.3 percent of GDP by 2027 and below 120 percent by 2029.
The June payment is timed to maximise impact ahead of an autumn credit rating review cycle. DBRS, Moody's and Scope Ratings are scheduled to assess Greece's economy from September, with Fitch concluding the cycle in November — evaluations the government hopes will yield further upgrades within investment-grade territory.