Greece’s Public Debt Set to Return to 2009 Levels

Greece’s 2026 fund aims astatine reducing nationalist indebtedness to 2009 levels successful percent of GDP. Overview of Athens with the Greek Parliament and the Temple of Olympian Zeus showing. Photo credit: George E. Koronaios CC BY-SA 4.0

Greece’s nationalist indebtedness is projected to instrumentality to 2009 levels by 2026, according to the Ministry of Finance and Economy pursuing the merchandise of the caller draught budget, which besides anticipates a 2.4 percent economical growth.

The draught fund estimates that successful 2026, nationalist indebtedness volition basal astatine 359 cardinal euros, oregon 137.6 percent of GDP—a notable diminution of 7.8 percent points compared to the 2025 projection.

In 2010, erstwhile Greece entered the archetypal bailout program, arsenic it had travel adjacent to bankruptcy, nationalist indebtedness stood astatine 147.8 percent of GDP.

This improvement is mostly owed to the information that successful December, Greece volition proceed with a new aboriginal repayment of the European Greek Loan Facility loans, which person a floating involvement rate. The proportional repayment of loans maturing successful the years 2033-2041, totaling 5.29 cardinal euros is expected to beryllium implemented

In December 2024, the Greek authorities proceeded with repayment of loans amounting to 7.935 cardinal euros. Previously, connected December 2023, Greece made indebtedness repayments of 5.29 cardinal euros. In December 2022 the indebtedness repayment magnitude was 2.645 cardinal euros.

These are loans from the archetypal rescue statement signed successful 2010, which represent the largest value successful the Greek nationalist indebtedness portfolio.

Loan repayments earlier last maturity date

According to the Ministry of Finance and Economy, Greece’s main extremity is to repay these bilateral loans a decennary earlier than their last maturity date, meaning by 2031 astatine the latest, truthful that the nationalist indebtedness is reduced some successful implicit presumption and arsenic a percent of GDP.

The ministry seeks to instrumentality vantage of the existent fiscal stableness and favorable planetary marketplace conditions. Greece besides wants to nonstop a awesome that the state is not simply seeking to screen its obligations, but to regain afloat fiscal autonomy and credibility, creating conditions for little borrowing costs successful the future.

As ministry officials report, aboriginal indebtedness repayment has aggregate benefits:

Reduction successful involvement costs and regulation of indebtedness work costs.

Enhancement of Greece’s credibility, arsenic markets and standing agencies volition person the connection that the state is actively managing its indebtedness and not simply done extensions.

Limiting refinancing risks and reducing vulnerability to imaginable aboriginal planetary turmoil.

Creating fiscal space, owed to the simplification successful involvement costs.

Based connected the ministry’s plan, the outlook for Greek nationalist indebtedness is to driblet to beneath 100 percent of GDP by 2035. With International Monetary Fund forecasts converging that successful 2030 Greece volition person indebtedness astatine 125 percent of GDP – a little percent than Italy – a information which, arsenic ministry officials constituent out, reflects advancement successful consolidating the country’s fiscal figures.