Greece to repay loans of 8 billion euros early
Greece plans to repay Support Mechanism loans of nearly 8 billion euros in December, as revealed in the draft state budget for 2025 that National Economy Minister Kostis Hatzidakis tabled in Parliament on Monday.
In December the Greek state plans to repay ahead of time loans of a fluctuating interest rate originating from the Greek Loan Facility and totaling 7.935 billion euros that normally mature in 2026, 2027 and 2028.
Greece has already paid back loans worth €5.29 billion in December 2023 and €2.645 billion in December 2022.
Following the December payment, the general government debt in 2024 is expected to drop marginally to €356.5 billion from €356.7 billion in 2023.
In terms of the country’s GDP, the reduction recorded is greater due to the Greek economy’s high growth rate.
Therefore, in 2024 the general government debt will drop to 153.7% of GDP, from 161.9% in 2023. In 2025, the general government debt is forecast to drop to 149.1% of GDP, with its nominal value increasing to €361.4 billion, compared to 2024.
To service the debt, the budget paid out €6.98 billion in interest in 2024, which corresponds to 3% of GDP, while in 2025 the related expenditure is forecast to drop marginally to €6.9 billion or 2.8% of GDP.
