Greece will make an early repayment of €5.29 billion in loans under its first bailout program, the Greek Loan Facility (GLF), after the Boards of Directors of the European Stability Mechanism (ESM) and the European Financial Stability Fund (EFSF) approved the move on Tuesday.
Pierre Gramenia, ESM Managing Director and EFSF CEO, said, “Greece continues to make significant progress in strengthening its economy. This additional early repayment of the GLF loan sends another positive signal to financial markets, improves Greece’s debt structure and reflects the country’s improving fiscal position. The ESM and EFSF remain committed to supporting the Greek authorities in their efforts to promote long-term growth and ensure debt sustainability.”
The repayment will use funds from a special cash reserve account created at the end of Greece’s adjustment program. The GLF, part of Greece’s first financial support program, agreed in May 2010, included bilateral loans from 14 eurozone countries totaling €52.9 billion euros, of which €31.6 billion euros remain outstanding. Greece completed repayment of its loans to the International Monetary Fund two years ahead of schedule in 2022.