Greece plans to proceed with a new early debt repayment of 8 billion euros, Kyriakos Mitsotakis told Bloomberg, highlighting the progress the country has made in recovering from the debt crisis. The prime minister also announced moves to dispose of the 18% of the National Bank that has remained under public control since the fall, in line with developments in the markets.

Message to markets

In particular, regarding the early repayment of the debt, as reported by Bloomberg, it concerns installments of three years, while it is noted that it is the third time that Greece proceeds with an early repayment of a package of installments received as part of the first bailout program in 2010.

Greece’s new move, which covers loans maturing from 2026 to 2028, is a signal to financial markets about the country’s continued economic recovery. Despite the government lowering its 2024 growth target to 2.5%, from the 2.9% it previously estimated, the country’s returns are significantly higher than average growth forecasts in the European Union, Bloomberg notes.

“There was real interest in Greek assets,” noted the prime minister. The market has shown that it believes in our long-term goal, but also that the current government is stable, it is here and it will remain for a long time.”

According to Bloomberg, under K. Mitsotakis, who was re-elected for a second term last year, Greece has regained investment grade, but notes that the country still has a lot of work to do. Debt as a percentage of GDP remains one of the highest in Europe, although it is expected to fall to 152.7% this year, from a high of 207% of GDP in 2020.

The Prime Minister also stated that these trends will continue. The country’s net debt declined in 2023 in nominal terms, not just as a percentage of output, and “I think it will probably decrease this year as well,” he said.

Part of the funds for the early repayment of the loans will come from the cash “cushion” that the country has, which was created during the debt crisis as a safety net, notes Bloomberg, which adds that now, as the rescue period of the country has passed Athens has access to the markets. He also notes that K. Mitsotakis has stated that he plans to use an amount of 5 billion euros from these funds to make the early repayments.

At the same time, the agency reports that the government has committed to a primary surplus of 2.1% of GDP both this year and next year, while recalling that in 2023 it was set at 1.9% of GDP.

Sales of holdings

According to Bloomberg, the Mitsotakis government taking advantage of the positive momentum has proceeded with a series of privatizations. Since October, the state has sold its entire stake in three Greek banks and is now preparing to sell its remaining stake in National Bank.

The state maintains an 18% stake in the National Bank. “We will do something in the fall, depending on the conditions that prevail in the markets”, said K. Mitsotakis without, however, giving more information.

Also, Bloomberg reports that in February the government completed the largest IPO in decades, with the listing of Eleftherios Venizelos on the Athens Stock Exchange.

Regarding the state’s participation in PPC, the Prime Minister clarified that the government will retain 34% of the Company. “We are very happy with the recovery of the company” said K. Mitsotakis.