Message of stability sends the Greece in the international investment community, focusing on its intention to repay prematurely loans of the first memorandum. The announcement was made yesterday (25.4.2025) by Finance Minister Kyriakos Pierrakakis from the headquarters of the International Monetary Fund (IMF) in Washington, at the Spring Summit for the World Economy.
This decision marks the continuation of a policy aimed at reducing public debt and reinforces the message of fiscal responsibility that Greece wishes to emit. At the same time, the Greek economy maintains strong growth rates and high primary surpluses, which allow not only premature repayment of loans, but also the return of part of profits to society.
In a period of intense international upheavals and great uncertainty fired by the war in Ukraine and the announcements of increasing duties by US President Donald Trump, the government’s financial staff determines the axes of economic policy with the aim of shielding the Greek economic policy.
Greece, due to strong growth rates and high primary surpluses (4.8% of GDP or EUR 11.4 billion in 2024), which also contributed to the fight against tax evasion has the budgetary margin on the one hand to pay early loan obligations that have taken over the period. Prime Minister Kyriakos Mitsotakis announced on Tuesday (22.4.2025).
The Prime Minister’s announcements will follow in the September at the TIF with a new package of a positive social sign, a key part of which will be tax cuts for consistent middle class taxpayers.
Greece with the first Memorandum of 2010 had borrowed € 52.8 billion. This loan has been reduced to € 31 billion due to repayments made during that time, and with the next tranche of € 5.3 billion to be paid in December it will further reduce to € 26 billion.
Recalling that the IMF loans have been repaid three years ago, Mr Pierrakakis said from Washington that “we must also repay the loans of the first memorandum and we want to do it ten years earlier. Welcome to things, we are not talking about a script, but about reality. The essential thing is to be able to do this because it puts weight on it. By reducing debt, the primary surpluses we create reach faster and better in society. “
The government’s plan has already been submitted to the ESM and provides for early repayment of a large part of the total debt liabilities expiring from 2033 to 2041, including the loans of the first memorandum.
It is noted that in 2024 installments for EFSF loans have begun to amount to EUR 141.8 billion with a repayment duration of 2056. Also in 2034 the ESM loan will be repaid of EUR 86 billion with a repayment duration of 2060.
Early repayment of loan liabilities, along with the maintenance of high growth rates, according to economic staff plans, is expected to lead to further reduction in the country’s debt at a faster rate. According to Eurostat data published Tuesday, Greece’s debt was 153.6% of GDP in 2024 from 163.9% of GDP in 2023.