Greece plans early repayment of €8 bln in loans
Greece plans an early repayment of 8 billion euros of bailout loans to eurozone countries this year as the country’s economy rebounds from the previous decade’s debt crisis, two officials told Reuters on Wednesday.
Greece regained its investment grade late last year after languishing for 13 years in the “junk” category, which helped it attract strong demand from foreign investors in its bond issues. “We will repay earlier loans that amount to €8 billion and expire in 2026, 2027 and 2028, more than initially planned,” an official with knowledge of the issue told Reuters.
In April Reuters had reported that Greece is planning to repay earlier up to €5 billion of loans expiring in the coming years to make room for more bond issues without increasing its debt, while adding liquidity to a shallow Greek bond market.
A second official confirmed the sum and the timeline, adding that the government will make use of €5 billion from the cash buffer of the €16 billion that built up during the third bailout.
The eurozone and the International Monetary Fund lent Greece about €280 billion during the crisis on the condition that Greece impose tough austerity measures. The country’s third bailout expired in 2018 and since then it has relied solely on debt markets for borrowing.
[Reuters]
