Greece is preparing to make an additional 13 billion euros in early debt repayments this year, aiming to push its debt‑to‑GDP ratio below Italy’s by year‑end and signal fiscal strength to investors and rating agencies.
After repaying 6.94 billion euros of its 52.3 billion‑euro bilateral loan from eurozone partners in June, the government now targets a total of 13 billion euros in early redemptions in 2026. Officials say the move, funded by fiscal surpluses and strong liquidity, should bring the debt ratio down to about 137% this year.
Finance ministry officials estimate that each 1 billion euro of early repayment saves roughly 30 million euros annually in borrowing costs under current conditions, implying around 360 million euros in yearly savings from the 13 billion‑euro package.
Over seven years, they say, that alone could exceed 2 billion euros in savings, even before accounting for tighter spreads and improved credibility.
Since 2019, Greece has already made about 36 billion euros in early repayments.
The latest round is intended to further reduce annual financing needs beyond 2032 and accelerate full repayment of the bilateral loan to 2031, a decade ahead of the original 2041 schedule.
German rating agency Scope Ratings projects Greece’s debt ratio falling to 128% of GDP in 2027 and 107% in 2031, below not only Italy but also France and Belgium, and approaching the eurozone average of around 90%.
Greece is due for fresh assessments by DBRS, Moody’s and Scope next month, followed by reviews from Standard & Poor’s in October and Fitch in November.