Greece finally appears one step closer to exiting its decade long debt struggle, as the government’s conservative financial policies have put them in a position to pay out their IMF loan early, according to a report by Reuters.
The country plans to repay more than 7 billion euros in loans it took from the International Monetary Fund and eurozone partners in the next two months.
Two officials, who wish to remain anonymous told Reuters on Thursday that the Finance Ministry would be able to repay €1.8 billion in IMF loans ahead of schedule.
Meanwhile, Greece will also be able to pay back another €5.3 billion for which the deadline expires in 2022 and 2023 by the end of the first quarter.
“We plan to complete the repayment in the next two months,” one official told Reuters.
“This will help us reduce our debt-to-GDP ratio. It will also send a signal to the markets that the Greek economy is strong and healthy,” a second official added.
In total, Athens took out three international bailouts from the European Union and the IMF between 2010 and 2015, amassing over €260 billion in debt. Since exiting the bailouts in 2018, it has relied solely on the markets for its financing needs.
Greece repaid about €6 billion to the IMF ahead of schedule back in 2019 and 2021 and has €1.8 billion in outstanding loans due by 2024.
It started paying off the first bailout loans to its eurozone partners last year and the Ministry of Finance intends to settle the country’s debt as soon as possible.
Greece expects to exit enhanced surveillance conditions that allow the European Commission to closely scrutinise its adherence to commitments this summer. The IMF could continue to provide advice and counsel.
The government is estimating the economy grew 9 per cent in 2021 after the economy rebounded from the first wave of COVID-19 lockdowns and has forecasted an additional growth by 5 per cent this year.
According to the officials, Greece has a cash buffer of 32 billion euros; enough to cover at least three years of maturing debt.
