The Minister of National Economy and Finance, Kyriakos Pierrakakis, is set to visit the Public Debt Management Organization to discuss reducing public debt by at least 30 percentage points by 2030, along with subsequent actions expected to lead to upgrades from rating agencies.
While nations like Italy and France anticipate rising public debt, Greece is strategizing to further decrease its debt to 140% of GDP by 2027 and 120% by 2030.
A key initial step involves repaying €31.6 billion from the first memorandum loan a decade earlier than the scheduled 2041.
Early Loan Repayment
This year, Greece plans to make early repayments on two additional installments from bilateral loans, totaling €5.3 billion (due after 2031). This move will yield significant economic benefits, generating interest savings for the country.
By achieving these targets, Greece will soon shed its status as the country with the highest public debt relative to GDP in the Eurozone. The latest International Monetary Fund (IMF) projections indicate that Greece, along with Cyprus and Portugal, is expected to see public debt decrease by over 15 percentage points in the next five years. The IMF also forecasts Greek public debt will decline to 125.1% of GDP by 2030.
According to a report submitted to the European Commission on April 30, Greece’s public debt stood at €364.88 billion or 153.6% of GDP at the end of 2024, down from €369.11 billion or 163.9% of GDP in 2023. This year, a further decrease of about 7.9 percentage points is anticipated, bringing debt down to approximately €362 billion or 145.7% of GDP.
Market Engagement
With the investment climate significantly improved and rating agencies upgrading Greece’s creditworthiness, Athens will maintain contact with financial markets, even though over 80% of its borrowing needs for this year are already met through new bond issuances and reissues.
Evidence of positive market sentiment towards Greek bonds is demonstrated by consistently high bidding amounts during market taps; the most recent instance was in March, when a dual issuance through reissuing bonds maturing in 2038 and 2054 generated a record €56 billion in offers.
According to the report submitted to the Commission, “Maintaining a robust level of cash reserves, nearly €40.2 billion by the end of March 2025, significantly aids in achieving low financing costs and ensures the fulfillment of medium-term debt obligations.”
