The finance ministry is considering early repayment of part of the bilateral loans Greece received as part of the first bailout in 2010, sources said.
The plan is still in its infancy, but has returned to center stage after Wednesday’s successful foray into the dual market with the reopening of five and 30-year bonds.
Greece has already repaid a large chunk of its most expensive International Monetary Fund loans as part of its efforts to lower its debt servicing costs and improve its credit profile.
Now he is turning to bilateral lending in a similar move, as it is believed that the IMF is bound to remain one of the country’s creditors in order to keep an eye on the economy, at least until Greece. sort of enhanced surveillance status of the European Union. in 2022. This means that for next year, at least, the repayment of bilateral loans will be preferred to those of the IMF.
The plan provides for the early repayment of loans due in 2022, totaling 2.6 billion euros, almost the sum that the Public Debt Management Agency raised on Wednesday during the reopening of bond issues. This would save Greece some 10 million euros next year. Bilateral loans result in annual disbursements of € 2.6 billion, for a total of € 52 billion by 2042.
However, it is not a simple matter: it will also require the agreement of the Member States which have loaned money to Greece and then that of the European Stability Mechanism to allow Athens to repay another creditor and not the ESM. . This is the same process as that followed for early repayment of IMF loans.
Greece has made early repayments of IMF loans amounting to around 6 billion euros in two installments, the second having been made last March and amounting to 3.3 billion euros. This last payment canceled contributions that would normally have been paid before December 2, 2022. After these payments, Greece’s remaining contributions to the Fund amount to € 1.7 billion, approximately the amount required for that the IMF controls Greece.