Greece is set to pay off €6.9 billion in debt in June 2025, a move that will reduce its debt-to-GDP ratio below that of Italy, ending its status as the eurozone’s most indebted nation relative to economic output, according to iefimerida.gr. The payment clears a major portion of Greece’s first 2010 bailout loan and brings the country’s debt-to-GDP ratio to 136.8 percent, compared to Italy’s projected 138.6 percent. Finance Minister Kostis Hatzidakis called the repayment a “fiscal strength” signal to global markets and credit rating agencies.

Greece Pays €5.3 Billion Ahead of Schedule

Separately, Greece paid off €5.3 billion in debt ahead of schedule in 2025, according to eKathimerini.com. The payment. Originally due after 2031. Will save the country €1.6 billion in interest payments until 2041 and help lower its debt below 120% of GDP by 2029; Government spokesperson Pavlos Marinakis confirmed the early repayment, noting that the debt was part of Greece’s first 2010 bailout from eurozone partners.

Debt Relief Calls From Soros and Greek Government

Legendary investor George Soros has repeatedly called for thorough debt relief for Greece, arguing that it can never fully repay its debt. In an interview with Spiegel. Soros said that if the official sector forgoes repayment while Greece meets troika conditions, private capital would return and the economy could recover. Greek Prime Minister Antonis Samaras also called for a new round of debt relief, but Germany and the ESM have resisted, favoring longer loan maturities and lower interest rates instead of direct write-offs.

IMF Loan Repayment Debate

Greece plans to repay part of its IMF loans early, with Finance Minister Euclid Tsakalotos indicating the issue will be discussed at the IMF’s Spring Meetings in April 2025, according to Tornos News. The IMF contributed €48 billion to the first two bailouts but did not take part in the 2015 third rescue package. Germany, however, has resisted early repayment, with its finance ministry expressing concerns that the IMF would “take a hands-off approach” to reforms if it received its money back early.

The German government has historically been reluctant to support debt write-downs. Klaus Regling, head of the European Stability Mechanism, has said debt write-offs are prohibited under ESM rules. Most of Greece’s debt is held by public institutions, and any write-down would be passed on to taxpayers.

Greece’s debt-reduction strategy includes a target of 130.3% of GDP by 2027 and below 120% by 2029. The June repayment is timed to maximize impact ahead of an autumn credit rating review cycle, with DBRS, Moody’s, Scope Ratings, and Fitch all set to evaluate Greece’s economy.