Greece Weighs Further Early Repayment of Bailout Era Loans

Greece is looking into repaying even more of its bailout loans ahead of schedule this year, a person familiar with the matter said.

The country already plans an early repayment next month of €6.9 billion ($8.1 billion) of its bailout-era loans, but if it borrows further funds from markets it will also consider repaying more official sector debt, the person said. Alternatively it could proceed with a buyback of existing bonds, the person added, speaking under the condition of anonymity as there is no final decision yet.

The move comes as the country continues to outperform its fiscal targets by producing high primary surpluses — the measure of revenue minus spending, excluding interest payments — and overall budget surpluses. At the same time, its economy has been growing faster than many European peers.

A further early debt repayment would follow similar moves in previous years. Last year, Greek Finance Minister Kyriakos Pierrakakis said the government’s planned to repay loans from its first bailout program – known as Greek Loan Facility — 10 years ahead of schedule.

Despite having one of the largest debt-to-gross domestic product ratios in the world, Greece could be overtaken by Italy as Europe’s most indebted country in 2026, according to the latest official forecasts by the two countries.