Greece has been cleared to repay almost €7bn of bailout loans ahead of schedule, in a move European officials say will improve the country's debt position.
The European Stability Mechanism (ESM) has approved Greece's request to repay €6.95 billion of loans early under the first bailout programme through the Greek Loan Facility (GLF). The loans were part of the international rescue packages agreed during Greece's debt crisis in 2010. Paying off debt ahead of schedule can help reduce future borrowing costs and signal financial strength to investors.
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European rescue funds agreed not to require Greece to repay loans owed to them early as part of the deal. Normally, Greece would have had to make parallel repayments to the European Stability Mechanism and the European Financial Stability Facility when paying back part of its bailout loans. The decision allows Athens to move ahead with the €6.95 billion repayment without triggering those additional obligations.
The ESM board also approved the use of funds from a special cash buffer account created after Greece exited its bailout programme to help finance the transaction.
Under the terms of Greece's agreements with the ESM and the European Financial Stability Facility (EFSF) , early repayment of certain creditors, including GLF lenders, would normally require a corresponding early repayment to the two European rescue mechanisms. The waivers approved on Thursday remove that requirement.
ESM Managing Director and EFSF Chief Executive Pierre Gramegna said Greece continues to make steady economic progress. He said the latest repayment to GLF lenders — the second-largest such repayment to date — would strengthen market confidence, reduces the risk from interest rate fluctuations and helps improve the structure of public debt. A stronger debt position can make it easier and cheaper for governments to raise money for public spending and investment.
The decisions followed an official request from the Greek government. The plan covers the early repayment of GLF loans originally due to mature in 2029 and between 2033 and 2035, with a total value of €6.95 billion. Once completed, the cash buffer account will be fully exhausted.
The Greek Loan Facility was a key part of Greece's first international bailout programme, agreed in May 2010. It consisted of bilateral loans from 14 eurozone countries worth a total of €52.9 billion, of which €26.3 billion remains outstanding.
Greece completed the repayment of its loans to the International Monetary Fund (IMF) in 2022, two years ahead of schedule. The previous early repayment of GLF loans took place in 2025.
