Greece is set to repay loans of nearly 8 billion euros from the EU Support Mechanism in December, according to the draft state budget for 2025 presented by National Economy Minister Kostis Hatzidakis.
The early repayment will cover loans that were originally due in 2026, 2027, and 2028, bringing relief to the country’s general government debt. The debt in 2024 is estimated to decrease to €356.5 billion, with a reduction in the debt-to-GDP ratio to 153.7%.
The budget allocated €6.98 billion for interest payments in 2024, equivalent to 3% of GDP, with a projected drop to €6.9 billion or 2.8% of GDP in 2025. This move reflects the improving economic conditions in Greece.