Greece’s public debt to return to pre-crisis levels

Public indebtedness volition beryllium reduced to 2009 levels, that is, earlier the 10-year crisis, by 2026.

According to the caller draught budget, it volition magnitude to 359 cardinal euros adjacent year, oregon 137.6% of GDP (a simplification of 7.8 percent points of GDP compared to 2025), down from 147.8% of GDP successful 2010, erstwhile Greece received its archetypal bailout package.

This is owed to the information that a caller aboriginal repayment of European GLF loans, which person a floating involvement rate, is expected to beryllium implemented successful December, with the pro-rata repayment of loans maturing betwixt 2033 and 2041, totaling 5.29 cardinal euros. This follows indebtedness repayments of 7.935 cardinal euros successful December 2024, 5.29 cardinal euros successful December 2023, and 2.645 cardinal euros successful December 2022. These are loans from the archetypal memorandum, which represent the largest load successful the indebtedness portfolio.

The main nonsubjective is to repay these bilateral loans a decennary earlier than their last maturity date, that is, by 2031 astatine the latest, truthful that nationalist indebtedness is reduced some successful implicit presumption and arsenic a percent of GDP.

As ministry officials note, aboriginal repayment has aggregate benefits:

Reducing involvement costs and limiting indebtedness work obligations.
Enhancing credibility, arsenic markets and standing agencies volition spot that the state is actively managing its indebtedness alternatively than relying connected extensions.
Limiting refinancing risks and reducing vulnerability to imaginable aboriginal planetary turbulence.
Creating fiscal abstraction by cutting involvement expenditure.

In conclusion, based connected the ministry’s plan, the outlook is to bring nationalist indebtedness beneath 100% of GDP by 2035. The IMF’s projections converge connected the presumption that by 2030 Greece’s indebtedness volition basal astatine 125% of GDP, little than Italy’s, which, arsenic ministry officials constituent out, reflects the important advancement made successful consolidating Greece’s fiscal position.

Source: ANA-MPA