Greece will accelerate early repayment of its public debt to €13 billion this year, up from an initial target of €8.79 billion, ahead of a busy four-month stretch that includes Prime Minister Kyriakos Mitsotakis’s annual policy address and a new round of sovereign credit reviews, government officials said.
Mr. Mitsotakis is expected to unveil the government’s economic policy roadmap through the 2027 elections, along with a strategic plan through 2030, during his traditional speech at the Thessaloniki International Fair (TIF) the first weekend of September. Government sources said the announcements will emphasize permanent relief measures — including reduced tax and social security burdens — targeting the middle class, small and medium-sized businesses, and pensioners, continuing the pattern set by the government’s three previous TIF announcements.
The increased debt repayment, made possible by strong fiscal performance, includes €6.94 billion repaid in June covering bilateral GLF loans, €2.5 billion in EFSF loan repayments, a €1.2 billion reduction in treasury bills, and early repayment of a €2.2 billion bond maturing in December 2027 — moves expected to generate €2.6 million in savings over the next seven years.
The debt reduction push comes as Greece enters a new credit review cycle. Canadian rating agency DBRS will publish its assessment September 4, followed by Moody’s and Germany’s Scope on September 18. Both DBRS and Scope currently rate Greece at investment-grade BBB, while Moody’s rates it one notch lower at Baa3. Standard & Poor’s and Fitch, both rating Greece at BBB, will issue reports October 23 and November 6, respectively. Analysts consider a further upgrade likely, citing the accelerated debt reduction.
With the faster repayment schedule, Greece’s public debt is projected to fall below 110% of GDP by 2031 — a year earlier than previously forecast — from an estimated 136.8% this year, with a longer-term goal of dropping below 100% by the mid-2030s.
