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Protest by pensioners against the government's austerity policy in Athens in March
Photo: IMAGO/Nikolas Georgiou / IMAGO/ZUMA Wire
Greece has repaid its outstanding financial crisis-era debt to the International Monetary Fund almost two years ahead of schedule.
The repayment "closes the chapter" on the 2010 sovereign debt crisis, Finance Minister Christos Staikouras said.
He spoke of a "very positive development" that would mean significant savings in debt servicing costs.
The country will also save 230 million euros in interest by repaying 1.85 billion euros in emergency loans early.
Greece received the green light from the European Stability Mechanism (ESM) and the European Financial Stability Facility (EFSF) at the end of March.
Starting in 2010, these newly created EU institutions, together with the IMF, saved the country from national bankruptcy with billions in aid.
National debt still at 189.6 percent of GDP
The creditors gave their consent for the early repayment of the outstanding loans last week.
Their approval was required because the original requirement was that the IMF's frontloading repayments should be made in parallel with repayments to European lenders.
A total of three consecutive bailouts between 2010 and 2018 had saved Greece from bankruptcy and exit from the common euro currency.
However, the various Greek governments have been forced to implement painful budget cuts and tax hikes, leading to rising unemployment and poverty.
Despite exiting the bailout program in 2018, Greece was still subject to increased surveillance, which is now scheduled to expire in 2022.
Despite significant improvements, Greece still has the highest public debt in the eurozone: According to government forecasts, it will amount to 189.6 percent of gross domestic product by the end of this year - compared to 197.1 percent last year and 206.3 percent in 2020.
Apr/AFP/AP
