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$Greece's \u20ac7.935 Billion Debt Prepayment$

kathimerini.gr

Greece's \u20ac7.935 Billion Debt Prepayment

Greece to prepay \u20ac7.935 billion in bilateral loans, utilizing a reserve fund to offset increased debt burden from retroactive interest payments.

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Greek

Greece

EconomyEuropean UnionFinanceGreeceDebtEurozone

EsmEurostatKfwPdmaEurogroup

Kostas HatzidakisPierre Gramegna

What are Greece's future plans regarding debt management and issuance?: Despite the prepayment, Greece plans further debt issuance (\u20ac7-8 billion) and prepayment (at least \u20ac5.3 billion) in the coming years. The country anticipates covering most of its 2025 debt obligations (\u20ac10.1 billion) with the primary budget surplus.
What is the expected effect of the prepayment on the remaining bilateral loans?: Following the prepayment, the remaining bilateral loans will decrease from approximately \u20ac40 billion to \u20ac32 billion. The Public Debt Management Agency (PDMA) plans to continue this policy of early loan repayment, facilitated by the country's limited borrowing needs.
How will Greece fund this prepayment, and what is the anticipated impact on its debt?: The prepayment will utilize \u20ac5 billion from a reserve fund, and is expected to fully offset the debt burden from retroactive interest payments from 2013. Approval has been received from 14 Eurozone countries and the KfW.
What is the purpose of the \u20ac7.935 billion prepayment scheduled for December 13th?: Greece is scheduled to prepay \u20ac7.935 billion from bilateral loans on December 13th, 2023. This prepayment covers loans maturing in 2026, 2027, and 2028, and is part of the country's effort to manage its debt.
What is the impact of the retroactive interest payment from 2013 on the Greek debt, and how will the prepayment help?: The retroactive interest payment, mandated by Eurostat, unexpectedly increased Greece's 2023 debt to 163.9% of GDP. This prepayment will help reduce this to levels closer to the initial projections.

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