Greece targets 100% debt-to-GDP by 2034
Greece expects its public debt-to-GDP ratio to fall below 100% by 2033-34, marking a major milestone in the country’s long-term effort to reduce its debt burden.
The strategy relies on maintaining high primary budget surpluses and repaying bailout-era loans ahead of schedule, with the government aiming to reduce financing needs and improve the overall debt profile.
Greece expects to record a lower debt-to-GDP ratio than Italy by the end of 2026, while Finance Minister Kyriakos Pierrakakis has set a target of bringing the ratio below 120% by 2029.
€4.7 billion in early repayments
The government plans two additional early repayments totaling €4.7 billion by the end of 2026.
A €2.5 billion repayment to the European Financial Stability Facility is expected by the end of October, followed by a €2.2 billion bond repayment to Greece’s four systemic banks on Dec. 15.
Including an initial repayment made June 15, Greece will have accelerated the repayment of about €7.75 billion in debt this year.
The government is also preparing a strategy for further early repayments from 2027, while its cash buffer is expected to exceed €30 billion by the end of 2026.
Despite the improving trajectory, Greece continues to carry one of the highest debt burdens in Europe. Officials say the pace of future reduction will depend on sustained economic growth and the ability to maintain high primary surpluses after support from the EU Recovery Fund diminishes.
Source:tovima
