Greece announces new early repayment of International Monetary Fund loans

Greek Finance ministry has launched procedures for the early repayment of a chunk worth 3.6 billion euros of a loan received by the International Monetary Fund. The specific repayment will cover loans ending in 2021 and 2022, Finance Minister Christos Staikouras said on Monday. It will be the second early repayment of IMF loans within a year, totaling 6.3 billion euros, from a total of around 8.0 billion euros received from the IMF, or around 80 pct.

“ The Ministry of Finance, in the framework of the loan and management program of the public debt portfolio for 2021, has started the process for a new early repayment, in the near future, amounting to approximately 3.6 billion euros, from the existing loans it has the country from the International Monetary Fund (IMF).

The repayment will be made in consultation and fully applying the terms and contractual obligations of the Greek State to its creditors, keeping the fully the terms and contractual obligations of the Greek state towards its creditors and preserving the framework of supervision and the active participation of all interested parties. This repayment will cover the part of loans with maturities within the years 2021 and 2022. It is the second that takes place by the current government, within a year, thus repaying 6.3 billion euros out of a total of about 8 billion. euro of borrowing from the IMF until the summer of 2019, ie about 80% of it.

This new early repayment is expected to be perceived as a very positive event regarding the debt of the Greek State, both by the credit rating agencies and by the international investment community.

The government and the Ministry of Finance, with the valuable contribution of the Public Debt Management Organization (ODDIH), despite the extremely adverse conditions caused by the pandemic, taking each time, with precision and stability, steps that gradually lead to normalcy, continue consistently the implementation of a balanced economic policy, which on the one hand provides timely necessary assistance to all those affected, showing social solidarity, and on the other hand leads to a continuous upgrade of the country’s prestige,” the Finance Minister said in a statement.