Greece Steps Up Early Debt Repayment Drive

Τhe Greek government is bringing public debt back into the spotlight by planning to allocate an additional 8.8 billion euros in 2026 for the early repayment of bailout-era loans, specifically the bilateral Greek Loan Facility (GLF) agreements.

The objective is to have these obligations fully repaid by 2031—ten years ahead of their original maturity. To date, Greece has already carried out early repayments of European loans totaling 20.1 billion euros, while a further 7.9 billion euros has been used to settle debts to the International Monetary Fund.

In total, 29 billion euros in liabilities have been cleared in advance, generating interest savings estimated at 3.5 billion euros.

Planning and public debt

According to the financing plan for the coming year announced by the Public Debt Management Agency (PDMA), the Greek state intends to raise around 8 billion euros from financial markets to meet its funding needs in 2026, slightly above the roughly 7.5 billion euros raised this year.

The PDMA report notes that the 2026 funding strategy prioritizes a sustained presence in international bond markets, alongside continued debt reduction, proactive and active portfolio management, and the preservation of a substantial cash buffer. It also aims to further enhance the functioning of the secondary market for Greek government bonds and to reduce refinancing risk.

On a cash basis, total financing needs for 2026 are estimated at 24.7 billion euros, including 8.9 billion euros for debt redemptions and 5.2 billion euros for interest payments.

Public debt is forecast to decline by 5.461 billion euros in absolute terms, reaching 359.3 billion euros. As a share of GDP, it is expected to fall to 138.2% from an estimated 145.9% in 2025, with the government targeting a drop below 120% of GDP by 2029.

Source: tovima.com