Greece will fully repay loans from its first international bailout by 2031—ten years earlier than scheduled—as it aims to shed its status as the European Union’s most indebted country, two government officials told Reuters.
The repayments, totaling around €31 billion, will be made in annual installments of €5 billion, the officials said, speaking on condition of anonymity. The loans were granted under Greece’s first bailout in 2010, part of a €280 billion rescue package funded by eurozone partners and the International Monetary Fund.
“Our aim is to fully repay, ten years earlier than scheduled, the rest of the loans from the first bailout which expire by 2041,” one of the officials said. Funding will come from a €37 billion cash reserve, higher-than-expected primary surpluses, and new bond issues.
Greece exited its third and final bailout in 2018, after a near-decade-long debt crisis that brought the country to the brink of leaving the eurozone and imposed harsh austerity measures on the population.
Finance Minister Kyriakos Pierrakakis declined to confirm the exact timeline or amount of annual payments but acknowledged that early repayment was underway.
“We are confident that this approach will enable Greece to shed the title of the most indebted EU country within the coming years,” Pierrakakis said in an interview. “This is a realistic and achievable goal.”
Greece’s debt-to-GDP ratio, currently the highest in the eurozone, is expected to fall below 140% by 2027, he added. Two officials said the figure could reach 135% by that year, potentially undercutting Italy, whose debt is forecast to rise to 138% of GDP by 2026.
Greece regained investment-grade credit status in 2023, helping to sharply lower its borrowing costs—now below those of Italy. The country’s debt has fallen more than 50 percentage points since 2020, dropping to 147% of GDP.
According to the second official, Greece’s total public debt will decline in absolute terms for the first time since exiting its last bailout, falling to €365.8 billion in 2024.
While the economy continues to recover, many citizens still feel the aftershocks of the crisis, which began in 2009 with revelations of widespread fiscal mismanagement. Unemployment, wage stagnation, and inflation remain pressing concerns.
Despite that, the government expects economic growth of 2.3% this year—more than double the eurozone average.
Greece paid off its IMF obligations in 2022 and had repaid €22 billion of its €53 billion first bailout by the end of 2024. The remaining amount is now scheduled for full repayment by 2031.
