S&P: Greece’s Early Bailout Repayment Credit Neutral, Debt on Track to Decline

The early repayment will be partially funded by the government’s cash reserves, which, according to the Public Debt Management Agency, stood at 40.1 billion euros at the end of the first quarter of 2025.

The early repayment of Greece’s first bailout loans will be credit neutral, neither improving nor harming the country’s creditworthiness, according to analysts from the international rating agency Standard & Poor’s.

In an online briefing, S&P analysts explained that the reduction in Greece’s cash reserves—used to finance the loan repayments—will not affect the country’s credit rating or its prospects for an upgrade. This is because the move does not undermine the trajectory of public debt reduction. The agency projects that Greek debt will fall to 114% of GDP by 2028.

The early repayment will be partially funded by the government’s cash reserves, which, according to the Public Debt Management Agency, stood at 40.1 billion euros at the end of the first quarter of 2025.

Originally, the final repayment for these loans was scheduled for 2041, but the Greek government now aims to complete repayment by 2031.

Regarding Greece’s credit outlook, S&P analysts said that a reduction in external imbalances could pave the way for a future upgrade. On April 18, the agency affirmed Greece’s outlook as “stable” while upgrading its credit rating to BBB/A2.

Executives at the international rating agency noted that they expect Greece’s current account deficit to narrow by 2026, signaling an improvement in the country’s external imbalances.

On a positive note, they added that the Greek economy has limited exposure to the United States—an advantage that became more evident after the imposition of tariffs by the Trump administration.