UNITED STATES, WASHINGTON (OBSERVATORY) — An application for early repayment of part of the loan of the International Monetary Fund (IMF) was submitted by Greece. This was announced on Monday, September 16, by Prime Minister Kyriakos Mitsotakis in his Twitter account.
One reason is the high interest rate on loan servicing. We are talking about € 2.9 billion, taken with an average interest rate of 5.13% of the total € 8.8 billion received by Greece from the IMF.
“Today, Greece has filed an application for early repayment of the expensive part of the loan provided to the IMF country,” the prime minister wrote.
During the global financial crisis of 2008, Greece was on the verge of default, the budget deficit exceeded GDP several times. International lenders agreed to provide financial assistance to Athens, demanding in return to adopt austerity programs. For all the time, the state received more than € 240 billion from the Eurogroup and another tens of millions of euros from the IMF.
The Ministry of Finance of Greece for a long time declared its desire to pay an IMF loan, since it was received at the peak of the financial crisis at an extremely high rate of 5% per annum. At the same time, Greece received loans from the European Union at a reduced rate, which was almost five times lower.
Last summer, Greece successfully completed the third program of external macro-financial assistance and left the external management of foreign creditors, which it has been under since 2010. At the end of 2018, the external debt of the state amounted to € 357.25 billion (192.4% of GDP). It is expected that this year this figure will decrease by 12.8% to 179.6% of GDP, or € 346.2 billion.
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