Greece accelerates bailout loan repayment plan

Greece plans to accelerate the repayment of billions in bailout loans, with Prime Minister Kyriakos Mitsotakis announcing that the country will aim to repay at least €5 billion ($5.3 billion) in 2025.

This marks a significant milestone in Greece’s economic recovery, following its near-exit from the euro area a decade ago. Despite having the highest debt-to-GDP ratio in the eurozone, Greece’s economy has outperformed the region every year since the pandemic.

Greece is expected to continue its growth in 2025 and 2026, with GDP forecasted to expand by 2.3 per cent and 2.2 per cent, respectively.

The country is also on track to cut its debt-to-GDP ratio, which peaked at 207 per cent in 2020 and is expected to drop to below 153 per cent this year.

The government has implemented measures, including high primary surpluses, early debt repayments, and privatisation proceeds, to reduce its debt burden. Greece’s improved fiscal position, along with regaining investment-grade status in 2023, demonstrates the country’s financial turnaround.