Early repayment of IMF loans increases Greece’s credibility, FinMin says

Greece’s early partial repayment of outstanding International Monetary Fund (IMF) loans will increase its credibility and secure immediate gains for the public sector, Finance Minister Christos Staikouras said on Monday. He noted that the early repayment will improve the sustainability of public debt, which is expected to have a positive impact on boosting its credibility in the markets.

“This move, which was a target proclaimed by the prime minister and the finance ministry, is of exceptional importance for the country and the Greek economy. The finance ministry continues to work, methodically and in a well established manner, for the step-by-step return of the country’s economy to full normality,” the minister said.

Staikouras made the statement after the European Stability Mechanism (ESM) announced that it would agree to a Greek request for early repayment of more expensive IMF debt while waiving the country’s obligation to also pay the same proportion of the much higher outstanding debt to the ESM and European Financial Stability Facility (EFSF).