Greece is planning to repay roughly 13 billion euros in debt early this year, accelerating a push to bring its debt-to-G...

Greece is planning to repay roughly 13 billion euros in debt early this year, accelerating a push to bring its debt-to-GDP ratio below Italy's before December, according to a Bloomberg source familiar with the matter. The repayment package includes around 2.5 billion euros in loans from the European Financial Stability Mechanism, a 2.2 billion euro bond originally maturing in 2027, and a 1.2 billion euro reduction in outstanding treasury bills by year-end. Final decisions have not been confirmed, and the plan could still be adjusted. This follows a 6.9 billion euro early repayment of bailout loans back in June, a move that pushed Greek 10-year bond yields below those of Italy, France, and the United Kingdom. Greece's debt-to-GDP ratio is now expected to fall to 137% this year, down from a previous estimate of 138.2%. If that holds, Italy would become the eurozone country with the highest debt-to-GDP ratio, a shift the European Commission had previously forecast for 2027. Greece is getting there a year ahead of schedule. The country's primary surplus, before interest payments, is expected to exceed its fiscal target again this year, according to Bloomberg's sources. Greece's economy is growing faster than most other European economies, and the government is projected to end 2026 with cash reserves exceeding 30 billion euros. Prime Minister Kyriakos Mitsotakis is expected to unveil short-term government priorities and a broader plan through 2030 in early September, ahead of elections due by mid-2027. If the budget continues to outperform, Bloomberg's sources say he is likely to announce additional tax relief measures for self-employed workers and other groups. The government has made clear it will not risk the fiscal credibility Greece has rebuilt since the decade-long debt crisis. #Greece #GreekEconomy #EuropeanEconomy