The European Stability Mechanism (ESM) has approved Greece's request to repay €6.95 billion of loans early under the first bailout programme through the Greek Loan Facility (GLF). The loans were part of the international rescue packages agreed during Greece's debt crisis in 2010. Paying off debt ahead of schedule can help reduce future borrowing costs and signal financial strength to investors.
European rescue funds agreed not to require Greece to repay loans owed to them early as part of the deal. Normally, Greece would have had to make parallel repayments to the European Stability Mechanism and the European Financial Stability Facility when paying back part of its bailout loans. The decision allows Athens to move ahead with the €6.95 billion repayment without triggering those additional obligations.
