The Boards of Directors of the European Stability Mechanism (ESM) and the European Financial Stability Facility (EFSF) today agreed to waive the ESM/EFSF loan repayment obligation linked to an early repayment of Greek Loan Facility (GLF) loans.

The waivers were granted in response to a formal request from the Greek government, which proposed an early repayment of principal payments originally due in 2026-2028 to GLF lenders of €7.935 billion. These are the loans granted to our country under the first bailout program agreed in May 2010, which included bilateral loans from Eurozone countries and the International Monetary Fund. 

It is recalled that under the ESM and EFSF loan agreements, when loans to other creditors are repaid early, a pro-rata amount of financial assistance from the ESM and EFSF facilities becomes immediately due and payable. 

With the exemptions granted today by the ESM and EFSF, Greece will not be obliged to make early repayments to either institution. 

"Greece continues to make important steps in its economic growth. It is one of the fastest growing economies in the EU and has returned to investment grade," ESM Managing Director and EFSF Managing Director Pierre Gramegna said in a statement, adding: "The scheduled early repayment of GLF loans is another positive signal for financial markets and demonstrates the improvement in Greece's fiscal position. The repayment will generate some savings for the Greek budget and will also strengthen liquidity management. These are notable developments for the ESM and EFSF, which hold around 54% of Greece's public debt. Our interests are shared, and we will continue to support the Greek authorities in their efforts to strengthen long-term growth and debt sustainability."

The Greek Loan Facility—the Greek Loan Facility—was part of the first financial support program for Greece, agreed in May 2010. It consisted of bilateral loans from 14 euro area countries amounting to €52.9 billion, of which €39.5 billion remain outstanding.

It is noted that Greece completed the repayment of its IMF loans two years ahead of schedule in 2022 and made the first early repayment of GLF loans in 2023.