Today, the Public Debt Management Organization (ODDIX) published the Strategy for the Financing of the Greek State in 2025.

This strategy, which is primarily based on the figures of the Budget recently passed by the Parliament, foresees that the financial needs of the Greek State for 2025, which amount to 15.823 billion. Euros will be covered by approximately half -53% (8 billion Euros)- with recourse and borrowing from the markets, while the remaining 3 billion euros will be covered by borrowing from supranational organizations (EIB, EBRD, Recovery Fund). The approximately 3.7 billion euros will be covered by the cash reserves of the State, which at the end of 2024 will amount to 33 billion. euro.

In fact, always according to the ODDIX, these important cash reserves cover approximately 3 years of the gross financing needs of the Hellenic Republic and as underlined continue to provide a significant security reserve against any possible risk for the refinancing of the Debt and interest rates in the medium term.

ODDIX estimates that the financing needs of the Greek State are kept below the limit of 10% of GDP, which strengthens the so-called sustainability of the Public Debt. More specifically, he estimates that in 2025 they will be 6.7% of GDP, while by 2070 they will fluctuate on average at 6.1% of GDP. The moderate borrowing needs of Greece for the next year are contrasted with those of Italy which reach 25.5% of the country’s GDP and Spain which amount to 16.3% of its GDP.

At the same time, the sustainability of the Greek Public Debt, which is found to be on a downward trajectory and will reach 146.8% of GDP in 2025 from 153.1% of GDP this year, is enhanced by additional factors such as:

  • From the fact that 70% of the debt stock is held by creditors of the official sector. The debt has a long-term maturity profile and low interest rates compared to most other EU bonds.
  • 100% of the debt, after its restructuring and the swaps that have been concluded, is at a fixed interest rate which limits the remaining interest rate risks.
  • In addition, the active management of the IDF debt has allowed Greece’s debt portfolio to be temporarily over-hedged against interest rate risk, which will help to further limit funding costs in the future.

Finally, fiscal management and high primary surpluses contribute to the de-escalation of Public Debt to 142.7% of GDP in 2026.

Specifically, for 2025 the primary surplus is predicted to be maintained at 2.9% of GDP, however, in 2026 it is predicted to increase to 3.2%.