Armed with the new upgrades from the rating agencies and fiscal stability, the Greek State is putting a bow on the markets in 2025, seeking to raise 11 billion. euro.

The presence of the Greek State in the bond markets next year is expected to be stronger than this year, due to the increased financing needs of the State Budget.

As can be seen from the Budget Report submitted to the Parliament yesterday by the Minister of National Economy and Finance Kostis Hatzidakiso net government borrowing in 2025 will be almost double compared to this year and it is predicted that it will reach 8.5 billion. euros from 4.07 billion euros in 2024.

To cover the financing needs, the State will draw 11 billion from the bond market. euros from 9 billion about what it is projected to draw this year.

The increased borrowing needs in 2025 result primarily from increase in the state budget deficit on a cash basis at approximately 4.4 billion euros from 3 billion in 2024. Only 3.7 billion will have to be added to the state budget deficit. euros which concern the loans of the Recovery Fund and another 1.7 billion. from the State’s participation in Share Capital Increases of companies, etc. 8.5 billion in net borrowing. euros if they are added to the debts of 5.5 billion euros that the State has to pay for the servicing of the Public Debt, the total financing needs arise, which amount to 14 billion. euro.

As stated in the introductory report to the Budget, these needs will be covered by 11 billion. euros with long-term borrowing (appeal to the bond markets) and the remaining 3 billion euros from the consumption of the high reserves of the State.

Given this, the borrowing strategy for the coming year is expected to be limited in terms of the total amount of issuances. Specifically, the aim of the loan strategy will be to ensure the continuous issuing presence of the Greek State in the international capital markets, the further provision of highly liquid issues by maintaining as far as possible their already extensive physical maturity, the reduction of the borrowing margins of the Greek State as and the further assurance of the consistency of the Greek State as a state issuer with characteristics of a Eurozone country. At the same time, the existing positions and characteristics of the Greek public debt portfolio will be utilized to the maximum extent possible, in the context of the general opportunities provided in the short-term part of the European curve.

In this context, in the context of the operation of the primary market, in addition to the issuing activity, the implementation of a portfolio management policy will be pursued through which the necessary space for the continuous presence of the Greek State in the markets will be ensured, the further reduction of the refinancing risk, the provision of necessary liquidity and the improvement of the operation of the secondary market of Greek bonds, while at the same time taking advantage of the slope of the Greek yield curve to ensure optimal result regarding the cost of borrowing.