The European Stability Mechanism (ESM) has signed off on Greece’s early repayment of €5.29 billion in Greek Loan Facility (GLF) debt, allowing the country to clear another portion of its first bailout on December 15.
To enable the move, the ESM and European Financial Stability Facility (EFSF) boards agreed to waive the rule requiring proportional repayment of ESM/EFSF loans when Greece pays other official creditors early. The ESM also authorised using money from a post-program liquidity buffer to finance the repayment.
ESM Managing Director Pierre Gramegna said the step “sends another positive signal to financial markets” and reflects Greece’s “stronger fiscal position.”
Greece requested the exemption so it could repay GLF loans maturing between 2033 and 2041 using its cash reserves. The GLF was created in 2010 as part of Greece’s first bailout, totalling €52.9 billion, with €31.6 billion still outstanding.
The country repaid its IMF loans early in 2022, and last made an early GLF repayment in 2024.
Source: Tovima.
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