The European Stability Mechanism (ESM) has approved ’'s request for early repayment of €6.95 billion in loans under the first bailout programme through the Greek Credit Facility (GLF). The loans were part of international bailout packages agreed upon during ’'s 2010 debt crisis in Greece. Paying debt ahead of schedule can help reduce future borrowing costs and signal financial strength to investors.
As part of the agreement, European bailout funds agreed not to demand that Greece repay ’'s debts to them early. Normally, Greece would have to repay some of its bailout loans, while the European Stability Mechanism and the European Financial Stability Facility would have to make parallel repayments to ’ne. The decision allows Athens’ to continue repaying 6.95 billion euros without triggering these additional obligations.
The ESM board also approved the use of funds from a special cash buffer account created to help finance the transaction after Greece's exit from the ’ bailout program.
Under the terms of ’'s agreements with the ESM and the European Financial Stability Fund (EFSF), early repayment of certain creditors, including GLF lenders, will require early repayment, which normally corresponds to both European bailout mechanisms. The waivers approved on Thursday eliminate this requirement.
Pierre Gramegna, Managing Director of the ESM and Chief Executive Officer of the EFSF, said that Greece’ continues to make steady economic progress. He said the recent repayment to GLF lenders (the second-largest repayment to date) would strengthen market confidence, reduce risk from fluctuations in interest rates, and help improve the structure of public debt. A stronger debt position could make it easier and cheaper for governments to raise money for public spending and investments.
The decisions came at the official request of the Greek government. The plan includes early repayment of GLF loans, due in 2029’ and expected to expire between 2033 and 2035, with a total value of €6.95 billion. Once completed, the cash buffer account will be completely depleted.
Greece Credit Facility, adopted in ’ in May 2010, was an important part of ’'s first international bailout program. This loan consisted of a total of €52.9 billion in bilateral loans from 14 eurozone countries; Of this, 26.3 billion Euro’s remain unpaid.
Greece completed the repayment of its loans to the International Monetary Fund (IMF) in 2022’, two years ahead of schedule. The previous early repayment of GLF loans occurred in 2025.
