Greece is set to repay €7 billion early from its remaining bilateral loans under the first bailout programme, in a move aimed at strengthening its fiscal position and boosting market confidence.
The announcement was made by Dimitris Tsakonas, Director General at the Bank of Greece, during the annual Euronext conference in Paris.
Strengthening Greece’s financial standing
The early repayment — expected by mid-June 2026 — will come from Greece’s strong cash reserves, which currently exceed €40 billion.
The funds relate to the remaining balance of the €52.9 billion Greek Loan Facility (GLF), part of the country’s first bailout agreement with eurozone states.
According to Tsakonas, the move is part of a broader strategy to:
- Improve Greece’s fiscal outlook
- Reduce public debt
- Enhance credibility in international markets
The early repayment is also expected to generate interest savings of around €90 million in the short term.
Accelerating debt reduction
Athens is moving faster than initially planned in paying down its bailout-era obligations.
Greece now aims to fully repay €31.6 billion from the first bailout loans by 2031, a full decade ahead of the original 2041 schedule.
This accelerated strategy signals continued confidence in the country’s economic recovery following more than a decade of financial crisis and restructuring.
Debt returning to pre-crisis levels
According to projections in the 2026 state budget, Greece’s public debt is on a steady downward path.
- Debt-to-GDP ratio expected to fall to 138.2% in 2026
- Down from 145.9% in 2025
- A reduction of 7.7 percentage points
This would bring Greece’s debt levels close to where they stood before the 2009 financial crisis, which ultimately triggered the country’s bailout programmes.
A signal to markets
The early repayment is widely seen as a strong signal to investors and European partners that Greece has fully turned a corner financially.
By reducing its debt burden ahead of schedule, Athens aims to lower future borrowing costs and further solidify its return as a stable eurozone economy.
