The Strategist

Greek Finance Ministry launches early repayment of IMF debt


12/30/2020 - 04:43



The Greek Ministry of Finance has begun early repayment procedures for about €3.6 billion of the loans which the country received from the International Monetary Fund (IMF).



snappy goat
snappy goat
According to Finance Minister Christos Staikouras, "as part of the public debt management programme in 2021, the Greek Ministry of Finance has started the procedure for a new early repayment of around €3.6bn of the amount of loans the country received from the IMF," after paying €2.7bn to the fund in November 2019.

According to the minister, "the repayment will be made after consultations and in the course of the full implementation of the Greek state's conditions and contractual obligations towards its creditors, while maintaining the stability of the current supervision and with the active participation of all parties concerned." 

This repayment will concern part of the loans maturing in 2021 and 2022. This is the second repayment made by the current government during the year, resulting in the repayment of €6.3 billion of about €8 billion of IMF loans taken until the summer of 2019, i.e. about 80% of them, the minister said.

According to Staikouras, "the new repayment will further optimise the Greek state's use of monetary resources, reduce interest rate and currency risk, and reduce refinancing risk for the next two years, while improving key public debt sustainability indicators such as the ratio of annual gross financing needs as a percentage of GDP and the debt-to-GDP ratio." 

For all these factors, as the minister notes, "this new early repayment is expected to be perceived as a very positive development for the Greek state's debt by both rating agencies and the international investment community.

source: naftemporiki.gr




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