Greece plans early repayment of part of its European debt

Monday 11 May 2026 - 16:00

Greece has announced plans to repay part of the financial assistance it received from its European partners ahead of schedule, signaling continued confidence in the country’s economic recovery after more than a decade of financial challenges.

Government spokesperson Pavlos Marinakis confirmed that Athens will repay approximately €6.9 billion next month from the first loans granted during the sovereign debt crisis that began in 2010. Greek authorities believe the early repayment will contribute to a steady reduction in the country’s public debt over the coming years.

According to estimates from the Finance Ministry, Greece aims to reduce its debt level to around 130% of gross domestic product by 2027. The country currently expects public debt to stand at approximately 137% of GDP in 2026, reflecting continued improvement compared with the peak levels reached during the financial crisis.

The debt reduction strategy has been supported by stronger economic growth, improved fiscal performance, and increased investor confidence. Officials have also highlighted the importance of maintaining financial stability while continuing reforms designed to strengthen the national economy.

Kyriakos Mitsotakis and his government have presented the repayment as a sign that Greece is gradually moving away from the period when it was considered one of Europe’s most heavily indebted countries. Dimitris Tsakonas, head of the Greek Public Debt Management Agency, recently stated that by the end of 2026 Greece may no longer hold the highest debt ratio in Europe.

During an economic conference in Athens, Tsakonas explained that Greek debt could eventually fall to between 113% and 115% of GDP in the coming years. If those projections are achieved, Greece could rank behind countries such as Italy, France, and Belgium in terms of debt levels within Europe.

The Greek debt crisis, which deeply affected the eurozone in the previous decade, led to several international bailout programs accompanied by strict austerity measures. Since then, Greece has gradually regained access to financial markets and improved its economic outlook, although challenges related to inflation, investment, and social recovery remain important issues for the country.