The government plans to early repay up to 5 billion euros in bailout loans to euro zone countries this year, two government officials told Reuters on Tuesday.
The eurozone and the International Monetary Fund (IMF) loaned Greece around 280 billion euros during the crisis, with the condition that it impose tough austerity measures.
An official told Reuters on condition of anonymity that the government plans to repay eurozone countries between 2.5 billion and 5 billion euros “probably in the second half of this year.”
The official said this would give the country room to issue more bonds without increasing debt, while adding liquidity to Greece's thin bond market. About 70% of the country's debt is held by public lenders, the Eurozone and the European Central Bank.
Another official also confirmed the amount and schedule.
After languishing in the “junk” category for 13 years, Greece recently regained investment grade status and was able to attract strong demand from foreign investors for its bond issuances.
Under this year's repayment plan, Greece will repay around 15 billion to 17 billion euros from the first bailout loan.
The country paid off the IMF in 2022, two years ahead of schedule, and repaid 5 billion euros in loans to euro zone countries in 2023.
The country's third bailout package expired in 2018, and it has relied solely on the bond market for its borrowing needs since then. [Reuters]
