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GreekReporter.com Greek News Economy European Stability Mechanism Approves Athens' Request for Early Repayment of IMF Loans

European Stability Mechanism Approves Athens' Request for Early Repayment of IMF Loans

The European Stability Mechanism (ESM) on Monday approved an early partial repayment of Greece’s outstanding loans to the International Monetary Fund (IMF).
At the same time it will waive Greece’s obligation to simultaneously repay the same proportion of outstanding loans from the ESM and European Financial Stability Facility.
Greece had proposed the early repayment of the more expensive portion of its IMF loans, amounting to 2.7 billion euros, but the equivalent proportion of its ESM/EFSF loans, which without the waiver would then immediately become due, amounted to 52.2 billion euros.
”Greece’s early partial repayment to the IMF will be beneficial for both Greece and the ESM. It will generate savings as Greece can now finance itself on the market at a lower cost compared to the cost of servicing the tranche to be repaid to the IMF,” the ESM noted in a statement on Monday.
Commenting on the decision, Greek Finance Minister Christos Staikouras stated that Greece’s early partial repayment of its outstanding IMF loans will increase the nation’s financial credibility and secure immediate gains for the public sector.
“This move, which was a target proclaimed by the Prime Minister and the Finance Ministry, is of exceptional importance for the country and the Greek economy. The Finance Ministry continues to work, methodically and in a well-established manner, for the step-by-step return of the country’s economy to full normality,” Staikouras added.
With information from AMNA

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