The Public Debt Management Agency (PDMA) is starting the procedures for determining the borrowing program for the next year without significant differences compared to the current year. The target is to contain the public debt and ensure its gradual de-escalation.
Although final decisions have not yet been made, the basic plan seems to include borrowing, through new issues, reissues of bonds and also interest-bearing promissory notes of a total amount at roughly the same levels as this year, i.e. around 8 to 10 billion euros.
Reduced financing needs are expected to play an important role in decisions to be made by December, when the 2025 borrowing program will be announced.
Financial needs
The financing needs will be slightly over 7 billion euros next year, which, among other things, will be distributed as follows:
- 2.25 billion euros relate to bond maturities
- 408 million loans relate to the European Investment Bank and the Development Bank
- 1 billion euros for the SURE programme
- 1.7 billion euros which concerns the installment payment for loans from the EFSF
- 1.59 billion euros from interest-bearing bonds
Already 9 billion euros from the markets this year
For this year, the Greek government has borrowed an amount that exceeds 9 billion euros, covering more than 90% of the goal set based on the 2024 borrowing program of 7 to 10 billion euros.
By the end of the year, probably in December, the early repayment of three more installments of the loan received by Greece under the first memorandum, totaling 7.9 billion euros, will be completed.
This amount concerns the installments for the years 2026-2028. Greece will, for the first time, use part of the “cushion” of cash reserves, amounting to 5 billion euros, with the consent of the European Stability Mechanism (ESM).
It is recalled that the amount of 15.7 billion euros is reserved in a special account at the Bank of Greece and comes largely from the ESM loan (9 billion euros) and bond issues. This last installment of the ESM to Greece was provided from the balance of the 86 billion loan of the third memorandum (Greece had used only 61.9 billion of this loan).
