Greece Formally Requests Early Repayment of Expensive IMF Loans



The Greek Finance Ministry sent to the European Stability Mechanism (ESM) on Monday evening the government’s proposal for the repayment of part of the loans Greece has received from the International Monetary Fund (IMF).

There has not yet been an official statement regarding the proposal, but sources from the Greek Finance Ministry told the state-run AMNA news agency that it has already been sent.

Greece would like to repay to the IMF nearly €3.7 billion earlier than planned, to avoid paying the high interest rate of the loans.

The amount Greece is requesting to repay early concerns the part of the debt which bears the high interest rate of 5.13 percent.

ESM chief Klaus Regling had revealed in Bucharest recently that out of this figure, €1.5 billion is due this year and €2.2 billion will be due in 2020.

This debt is vulnerable to fluctuations in interest and currency exchange rates, among other factors, a danger which cannot be avoided with any financial tools. In addition, the nation will improve its financial standing by the early repayment, which may also make it easier to obtain other financing in the future.

With information from AMNA