“The extensive public debt that compromised our national sovereignty and social unity is now decreasing rapidly,” stated Kyriakos Pierrakakis, Minister of National Economy and Finance, during his visit to the Public Debt Management Agency (PDMA).
In his remarks, Pierrakakis highlighted the successful completion of the IMF loan repayments and the early repayment of a significant bailout loan, eliminating previous risks.
He mentioned, “The country is on track to reduce its debt, and by 2029, it will no longer hold the title of the most indebted nation in Europe. This reflects the resilience of the Greek people after years of struggle, and provides a solid foundation for future progress.”
“Debt reduction,” he underscored, “offers the nation greater freedom, more economic opportunities, lighter future burdens, and stronger growth potential. It will also enhance market trust. This significant achievement is largely attributed to the efforts of the Public Debt Management Agency (PDMA), its staff, and Director General Mr. Tsakonas.”
Early Repayment of 31.6 Billion Euros by 2031
Sources from the Ministry of National Economy and Finance assert that Greece’s public debt is on a sustainable path with better prospects than those of other eurozone countries.
The same sources indicated that approximately €31.6 billion of the debt will be repaid by 2031, a decade ahead of schedule, as noted by Pierrakakis. Furthermore, Greece’s debt servicing terms are more favorable than those of Germany and other EU nations, with a servicing cost of just 1.73%.
According to the same sources, the government will continue early repayments of loans from the first bailout program (Memorandum I) in the coming years, aiming for full repayment by 2031, rather than the originally planned 2041. They also mentioned that in December 2025, the Greek government will make an additional early repayment of at least €5.29 billion, covering maturities between 2033 and 2041.
This initiative signals enhanced fiscal security—not only to institutions and credit rating agencies, but crucially to international investors—by demonstrating prudent and timely financial management to further diminish its annual gross financing needs beyond 2032.
Moreover, as outlined in the Eurogroup’s May 2018 decisions, if Greece adheres to its fiscal targets and implemented structural reforms from 2018 to 2032, any unforeseen global crisis that threatens debt sustainability (not caused by Greece) will prompt European institutions and eurozone countries to consider additional measures for debt sustainability.
Additionally, they emphasized Greece’s assurance regarding debt sustainability post-2032. Despite global challenges that could have jeopardized the Greek debt trajectory, such as the pandemic and energy crisis, the government has effectively navigated these issues, making additional measures in 2032 currently unnecessary.
Debt Profile
According to these sources, the extensive efforts over the past 15 years have shaped a general government public debt portfolio that, by the end of 2024, includes the following key features:
- Total debt: €364.8 billion
- Weighted average maturity of debt: 18.8 years
- Weighted average repricing duration: 18.2 years
- Annual debt servicing cost: 1.73%
