File photo.
Greece will proceed with higher borrowing and early repayment of bailout loans in 2026.
According to the state budget submitted to Parliament by Economy and Finance Minister Kyriakos Pierrakakis on Thursday, the state’s net borrowing will reach 13 billion euros in 2026, from about €8 billion this year.
On the one hand, this reflects the state’s higher cash financing needs, which are estimated to reach €30.1 billion in 2026, from €14.08 billion this year.
In 2025 the Greek state allocated approximately €5.3 billion for the early repayment of GLF loans as the government’s goal is for these loans to be repaid by 2031.
Regarding the state’s borrowing program for the new year, the budget data show that long-term borrowing will reach €12.7 billion from €11 billion in 2025.
With this borrowing, but also with the use of part of the “cushion” (liquid assets), amounting to €18.4 billion, the state’s cash financing needs in the new year will be covered.
For the same purpose last year the state had used only €3 billion of available funds.