In yet another move to reduce the public debt, Greece proceeds in December, discounting loans amounting to 5.29 billion euros from the first memorandum. The Public Debt Management Organization (ODDIX) accelerates the repayment process, immediately reducing the debt by around 2.2% of GDP and saving around €150 million in interest over a 12-year horizon.
The initiative is part of the government’s strategy to more aggressively reduce debt, leveraging the country’s strong fiscal performance and high cash reserves. The goal, according to the plan, is to have all the bilateral loans of the first program fully repaid by 2031, that is, ten years before their normal maturity.
This is the repayment of the loans of the GLF (Greek Loan Facility), through which the Greek State had borrowed 52.9 billion euros from the countries of the Eurozone in 2010. Of this amount, 21.3 billion euros have already been returned, while the remaining 31.6 billion euros will be gradually repaid until 2031. In this way, Greece effectively closes the capital of the first memorandum, as these loans had an interest rate of more than 3%, compared to 1.73% which is now the average for the total public debt. Early repayment therefore reduces interest rate risk and improves the country’s debt profile.
According to the draft Budget for 2026, general government public debt is estimated to fall below 140% of GDP for the first time since 2010, reaching 137.6% compared to 145.4% this year. This is the largest reduction in a decade and a turning point for the Greek economy, as the country is no longer the most heavily indebted in the Eurozone — ending a 15-year cycle of economic surveillance.