Greece will repay the loans granted under the first of its three international bailout programs by 2031, according to an exclusive report by the Reuters agency citing two government officials.
The repayments, which will be made in annual installments of €5 billion, will allow Greece to settle the debt a full decade ahead of the loans’ official maturity, the officials told the agency.
According to Reuters, the Greek economy is gradually recovering from the debt crisis that spanned from 2009 to 2018—a period during which the country came close to exiting the eurozone and experienced years of social unrest as citizens grappled with deep cuts to wages and pensions due to austerity measures.
Minister of State Kyriakos Pierrakakis commented, “We are confident that this approach will allow Greece to shed the title of the most heavily indebted country in the EU within the next few years.”
One of the officials stated, “Our goal is to fully repay the remaining loans from the first bailout program, which are due to mature in 2041, ten years earlier than planned.” The source added that Greece will use a cash reserve of €37 billion, higher-than-expected revenues from primary budget surpluses, and proceeds from new bond issuances to finance the early repayments.
