Greece’s goal is to reduce its debt by around 20 basis points within the next four years, setting yet another milestone in the exit from the ten-year crisis experienced by the country, said the Minister of National Economy and Finance Kostis Hatzidakis.

In the context of his interview with the Bloomberg agency, the MINISTRY of Foreign Affairs predicted that the country’s borrowing will decrease to “close to 130%” of GDP by the end of 2028getting a boost from the economy which has been performing better than others.

“This is a significant reduction,” said the minister.

As Bloomberg reports, Greece’s debt soared to 207% of GDP in 2020, with the government predicting that it will drop to 152.7% this year. The reduction of public debt by 20% – predicted by K. Hatzidakis – presupposes a lower borrowing package from Italy, unless the picture of Greece’s public finances changes dramatically.

What helps Greece in the present phase is the fact that its economy is outperforming most European economiesnotes Bloomberg and adds that the country recorded growth of 1.1% in the second quarter, while the eurozone as a whole showed an increase of just 0.2%.

For this year the primary surplus will be higher than the 2.1% target, reaching 2.4% of GDP, a development that enables a further increase in primary expenditure for 2025 in relation to the Commission’s initial direction of a 3% increase, said K. Hatzidakis.

“Thanks to the better-than-expected fiscal performance, we can increase spending relative to our initial estimates,” he noted.

Greece will be able to increase its net spending by “just above 3%” in 2025 – against an initial forecast of 3% – and will be able to continue to increase its spending, at this rate on average, until the end of 2028, explained the minister.

At this point Bloomberg reminds that the Greek government is proceeding with the early repayment of the debt totaling 8 billion euros and as noted this will be the third time that Greece will proceed with early repayment of the aid it received under the first bailout program in 2010.

All these decisions highlight the strength of the Greek economy, but also the determination of the government to continue on the path of fiscal prudence, emphasized Mr. Hatzidakis.

He also stated that this message has been fully understood by rating agencies, various international organizations and investors abroad.

Package of National Bank shares

Referring to the additional package for the sale of Ethniki shares held by the HFSF, Mr. Hatzidakis noted that it will possibly take place in October, if market conditions are favorable, without however revealing further details.

He noted, however, that in order for the National Bank not have a competitive disadvantage in relation to the other three major banks of the country “the intention of the government is to eliminate the special rights that the state has in the bank.”

A Reuters telegram at the same time states that the process of allocating a rate of up to 12% of the National Bank is expected to start next Monday. National Bank is the last of the systemic banks in which the public through the Financial Stability Fund maintains an equity presence with a percentage of 18.4%. After the distribution of the shareholders’ package, the balance of the public participation will be transferred to the sovereign investment fund of Greece.