ESM: Greenlights early repayment of IMF loan by Greece

The “green light” for the early repayment of IMF loans from Greece was given by the ESM.

In particular, the Board of Governors of the ESM and the EFSF gave their approval.

“The early full repayment of the outstanding loans of the IMF as well as the repayment of part of the GLF loans (bilateral loans of the first memorandum) sends a positive signal to the markets for the financing position of Greece. In addition, it will have a positive impact on the Greek public debt profile and will produce some savings for the budget. These are welcome developments for the ESM and the EFSF, which hold in their hands about half of Greece’s public debt. Our interests are common and we will continue to work with Greece to support its efforts to strengthen the long-term development perspective, which is key to debt sustainability,” the statement said.

The approval was given at the request of the Greek government for the early repayment of IMF loans amounting to 1.86 billion euros. In addition, Greece plans to repay earlier GLF loans of 2.65 billion euros. It is part of the loans of the first memorandum with 14 member states of the Eurozone, with a total value of 52.9 billion euros.

It is worth noting that with this, the third, discount of the IMF, Greece repays – two years before its expiration – the entire debt to the Fund, totaling 8.2 billion euros.