At 2009 levels, that is, before the 10 -year crisis, public debt will be reduced in 2026. According to the draft of the new budget, this will be 359 billion or 137.6% of GDP next year (a decrease of 7.8 percentage points of GDP compared to 2025), when it was 147.8% of GDP in 2010, when the country received the first rescue package.

Development, which is largely due to the fact that a new premature repayment of GLF’s European loans, which have a floating rate, with the proportionate repayment of loans expiring in the years 2033-2041, totaling € 5.29 billion is expected to be implemented in December this year. It has been preceded by loans of € 7,935 billion in December 2024, other € 5.29 billion in December 2023 and EUR 2,645 billion in December 2022. These are loans of the first Memorandum, which constitute the highest burden on the debt portfolio.

Now, the main objective is to repay these bilateral loans a decade earlier than their final expiry date, ie at the latest by 2031, so that public debt is reduced both as an absolute size and a percentage of GDP. The Ministry of National Economy and Finance is seeking to exploit current fiscal stability and favorable market conditions. And to signal that the country is not merely seeking to meet its obligations, but to regain complete autonomy and reliability, creating conditions for lower borrowing costs in the future.

According to ministry officials, early repayment has multiple benefits:

* Reduction of interest costs and reduce debt service costs.

* Enhancing credibility, as markets and ratings will receive the message that the country is actively managing its debt and not just through elongation.

* Restriction of refinancing risk and reducing exposure to possible future upheavals internationally.

* Creating a fiscal space due to the reduction of interest costs.

In conclusion, on the basis of the Ministry’s plan, the prospect is to retreat public debt below 100% of GDP by 2035. With IMF forecasts converging that in 2030 Greece will have debt to 125% of GDP- lower than Italy- a fact that, as the Ministry notes.