July 19, 2024

Athens News

News in English from Greece

Greece plans to repay 8 billion euros of loans secured by real estate ahead of schedule

Greece plans to early repay 8 billion euros of loans issued to eurozone countries this year as the country's economy recovers from the debt crisis of the previous decade, two officials told Reuters on Wednesday.

Late last year, Greece restored its investment grade rating after 13 years in the “junk” category, helping it attract strong demand from foreign investors for its bond issues. “We will repay €8 billion of previously taken out loans due in 2026, 2027 and 2028, which is more than originally planned.”an official familiar with the matter told Reuters.

In April, Reuters reported that Greece plans to early repay up to 5 billion euros of loans due in the coming years to make room for issuing bonds without increasing debt while boosting liquidity in Greece's beleaguered bond market.

A second official confirmed the amount and timing, adding that the government would draw 5 billion euros from the 16 billion euro cash buffer accumulated in the third bailout.

The eurozone and the International Monetary Fund lent Greece about 280 billion euros during the crisis on the condition that Greece introduce tough austerity measures. The country's third bailout program expired in 2018 and has since relied solely on debt markets for borrowing.


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