It is now a matter of time to complete the process of early repayment of three more installments from the loan of the first memorandum totaling 7.935 billion euros after approval by the European Stability Mechanism (ESM).
The relevant payment will be made on Friday, while 5 billion euros will be utilized from the “hard core” of cash reserves amounting to 15.7 billion euros.
The early repayment of the installments for the years 2026-2027-2028 will help Greece save 150 million euros that would have to pay for interest.
Similar moves (early repayment of installments) are planned for both 2025 and 2026. The Prime Minister has already announced that the country plans to proceed in 2025 with another early repayment of installments from the loan of the first memorandum, which mature in the period 2033-2042. For these amounts, it is also planned to utilize part of the “cushion” of 15.7 billion euros.
However, in 2025 the country will have to follow the procedure followed both this year and in previous years. That is, in early autumn, it will submit a relevant request for early payment so that, after the relevant approvals, it can proceed with the early repayment of the installments before the end of each year.
These specific moves aim to continue the downward trend of public debt as a percentage of GDP, reduce interest service costs, and send the message to the markets that the country can service its loan obligations.
Plan to raise 8 billion euros from the markets in 2025
Maintaining a presence in the markets through new issues, reissues of bonds and interest-bearing notes make up the mix of policies that the Public Debt Management Agency (PDMA) will follow in the new year.
The borrowing program for 2025 will provide for 8 billion euros to be raised from the markets via limited issuances of new short-term bonds, reissues of bonds on specific dates (as was done this year), and a reduction in the amounts raised through the issuance of interest-bearing notes.
