Greece is considering an even larger early repayment of its bailout loans this year, according to a source cited by -.
The country has already scheduled an early repayment next month of €6.9 billion in loans from the memorandum period. However, if it manages to raise additional funds in the markets, it may consider repaying even more of its official debt, the same source said.
Alternatively, the government could proceed with a buyback of existing bonds, according to the unnamed source, although no final decision has yet been made.
The discussion comes as the Greek economy continues to outperform fiscal targets, recording strong primary surpluses—defined as revenues minus expenditures excluding interest payments—and overall budget surpluses, - notes.
At the same time, the economy is growing at a faster pace than several other European countries.
A new round of early debt repayment would follow similar steps taken in previous years. Last year, Finance Minister Kyriakos Pierrakakis said the government planned to repay loans from the first Greek bailout program (the Greek Loan Facility) ten years ahead of schedule.
Although Greece still has one of the highest debt-to-GDP ratios in the world, it could cease to be Europe’s most indebted country by 2026, as recent official forecasts for Greece and Italy suggest that Italy may overtake it.
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