Greece plans to repay up to 5 billion euros of bailout loans to euro zone countries early this year as it seeks to return to normality after the debt crisis of the past decade, two government officials told Reuters on Tuesday.
The eurozone and the International Monetary Fund (IMF) lent Greece around 280 billion euros during the crisis on the condition that Greece impose tough austerity measures.
As Reuters reports, austerity has reduced public sector wages and pensions and sparked years of violent protests. But in recent years the economy has recovered, leading to a number of early loan repayments.
An official who spoke on condition of anonymity told Reuters the government plans to repay between 2.5 billion and 5 billion euros to eurozone countries, likely in the second half of the year.
The official said this would help the country create room for more bond issuance without adding to its debt, while adding liquidity to a “shallow” Greek bond market.
About 70% of the country’s debt is held by its official creditors, the eurozone and the European Central Bank.
