Athens: Greece has completed an early repayment of €5.3 billion in loans from its first eurozone bailout programme, a move aimed at reducing future interest costs and reinforcing investor confidence.
The repayment, coordinated by the European Commission, covers debt that was originally scheduled to mature after 2031 and in some cases into the 2040s. The loans were part of the Greek Loan Facility (GLF), the emergency mechanism created in 2010 at the height of the eurozone sovereign debt crisis.
Greek authorities said the early settlement would help lower long-term budgetary pressures and accelerate debt reduction. Local media reports estimate the move will save Greece around €1.6 billion in interest payments through 2041, with the country’s debt-to-GDP ratio expected to fall below 120% by 2029.
The GLF was established before the creation of the European Stability Mechanism and played a critical role in preventing Greece from defaulting after it lost access to financial markets in 2010. Although the facility is no longer active, outstanding loans have continued to be repaid.
Greece’s public debt remains the highest relative to GDP in the euro area. As of June 2025, total public debt stood at approximately €403.2 billion, equivalent to about 151% of GDP.
The early repayment follows a pledge made in 2023 by Prime Minister Kyriakos Mitsotakis, who said Greece would accelerate repayment of crisis-era loans as its fiscal position improved. The government used funds already set aside in a special reserve account, rather than raising new debt, after receiving approval from eurozone lenders earlier this month.
Pierre Gramenia, managing director of the European Stability Mechanism and chief executive of the European Financial Stability Facility, said the repayment sent a positive signal to markets and reflected Greece’s strengthening fiscal position.
Greece has gradually rebuilt investor confidence since emerging from its bailout programmes in 2018. By 2023, the country had regained investment-grade credit ratings from major agencies, helping push down borrowing costs. Greek 10-year bond yields have at times fallen below those of larger eurozone economies such as Italy and France.
Critics of the move argue that accelerating debt repayments could limit domestic liquidity at a time when households and businesses continue to face cost-of-living pressures. Opposition parties say the funds could have been directed toward public investment or targeted economic support.
