Pierrakakis to Bloomberg: Greece Ready to Speed Up Debt Payoff

Greece is considering speeding up the early repayment of its remaining bailout-era loans, Finance Minister Kyriakos Pierrakakis said in an interview with Bloomberg TV on Friday, pointing to stronger growth, persistent budget surpluses and a rapid drop in the country’s debt ratio.

Pierrakakis reaffirmed Greece’s plan to repay, 10 years ahead of schedule, the loans issued under the country’s first 2010 bailout package. The government had previously set 2031 as the target date for the early payoff, but the minister said Athens may try to complete the move even sooner.

“We will be exploring frontloading that, if it’s possible,” he said.

Greece’s public debt peaked at 210% of GDP in 2020, during the pandemic. According to Pierrakakis, the ratio is projected to fall to 137.6% in 2026, with the goal of bringing it below 120% before the decade is out. He described the country’s pace of debt reduction as the “most rapid de-escalation” in Europe.

The minister emphasized that Greece intends to remain “quite aggressive” in cutting its debt, noting that high public debt carries social costs. He stressed that the government does not want to “repeat the mistake of the previous generation” by passing the burden to the next.

Light Borrowing Plans for 2026

According to Bloomberg, Greece is expected to raise up to €8 billion from markets in 2026, based on information from a person familiar with the matter. Pierrakakis confirmed that Athens faces a “light borrowing plan” for next year, saying that steady primary surpluses and stronger growth allow the government to focus less on new issuance and more on improving liquidity in the secondary market. “It’s a good problem to have,” he said.

Support for Euronext’s Bid for Athens Stock Exchange

The minister also expressed optimism about Euronext’s offer to acquire the Hellenic Exchanges, operator of the Athens Stock Exchange. The offer, which has support from both the Greek government and the exchange’s management, closes on November 17, with results expected on November 19.

“Greece needs access to this broader liquidity pool,” Pierrakakis said, arguing that deeper capital markets are essential for attracting foreign investment. He pointed to recent moves by international investors, including UniCredit’s increased stake in a Greek bank, as evidence of renewed interest in the country.

Broader European Issues: Sanctions, Reforms and Cross-Border Deals

Discussing European policy, Pierrakakis repeated Greece’s full support for Ukraine ahead of President Volodymyr Zelenskyy’s visit to Athens this coming Sunday. He said that discussions over the use of frozen Russian assets must be examined carefully to ensure legal soundness and protect Belgium from any potential legal implications but he expects progress soon.

He also welcomed the push for more cross-border mergers and acquisitions within the EU, noting that Greece favors deeper financial integration. Referring to the forthcoming reshuffle of top European Central Bank posts, he did not comment on potential candidates but said Greece hopes to see “many Greek names” represented in European institutions, a move that according to the Greek Finance Minister would reflect the fact that Greece has become an unlikely european sucess story.

Source: tovima.com