By Chrysostomos Tsoufis

With another premature one debt repaymentthe third consecutive one, the Greek State bids farewell in 2024.

This repayment differs from the previous ones in 2022 and 2023 in that it is larger (€8 billion compared to €2.65 billion and €5.3 billion in the first 2 respectively) and in that for the first time part of the cushion’s hard core is being used. A hard core that was once a major point of contention between ND and SYRIZA when the official opposition of SYRIZA at the time requested that it be used to take measures against the energy crisis and precision and the ND government replied that this money has the sole mission of debt repayment .

The Greek State received the OK from the ESM and is currently repaying €8 billion (€5 billion from the cushion and the rest from the markets) from the loan of the first memorandum, saving about €150 million in interest. Thus, in the last 3 years, the total of early debt repayments reaches €16 billion, sealing the “good payer” culture that Greece cultivates in the markets. A culture that will have continuity since corresponding actions are planned in 2025 and 2026 as well.

Especially for 2025, the prime minister has announced another early prepayment of €5.3 billion, bringing the total amount to €21.3 billion of the €52.3 billion of the first bailout loan from the eurozone.

These early payments:

-They reduce the public debt by the same amount. And with the rates of reduction in 2032 Greece will no longer be the most over-indebted country in Europe
-Strengthen the credibility of the country with tangible results. On the one hand, the cost of borrowing is now lower than that of France, for example. On the other hand, the country’s entry into the club of investment-grade countries, a fact which, according to Kostis Hatzidakis, has benefited Greek citizens with €800 million.

This large prepayment does not particularly harm the cash reserves of the country, which in the west of 2024 will reach €32 billion. However, even though there is liquidity and even though the country’s financial needs are limited for the coming years, ODDIX is planning more appointments with the markets to keep the communication channels with them active.

According to the 2025 budget, which is discussed in the Parliament and voted on Sunday, the financial needs for 2025 are predicted at €14.1 billion. To cover them, net borrowing through bond issues of €8.5 billion is planned, while reserves of €3.1 billion are also planned