Greece to repay chunk of bailout debt early and touts recovery during anger over cost of living

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ATHENS, Greece (AP) — Greece will make an early repayment of 5 billion euros ($5.3 billion) in bailout-era debt in 2025, Prime Minister Kyriakos Mitsotakis told a banking conference in Athens on Monday, describing the move as a signal of the country's fiscal recovery.

“This ... underscores our confidence in public finances and reflects our commitment to fiscal discipline,” Mitsotakis said.

Finance Ministry officials say they plan to reduce debt through primary surpluses, loan repayments and combating tax evasion.

Greece has rebounded from a 10-year financial crisis that forced it to borrow tens of billions of euros from its European Union partners and the International Monetary Fund.

But Mitsotakis' center-right government, elected for a second term in 2023, is struggling to address a cost of living crisis that has sapped Greeks' spending power. Despite the lack of any substantial challenge from opposition parties, the high cost of living has nibbled away at the government's approval ratings and triggered union anger.

The country's two main private and public sector unions have called a general strike for Wednesday that will keep island ferries in port and disrupt other forms of transport and public services.

A protest march will be held in central Athens on Wednesday morning.

The GSEE main private sector union on Monday accused the government of “refusing to take any meaningful measures that would secure workers dignified living conditions.”

“The cost of living is sky-high and our salaries rock-bottom, (while) high housing costs have left young people in a tragic position,” GSEE chairman Yiannis Panagopoulos said.

According to EU forecasts, Greece's economy is expected to grow 2.1% in 2024 and maintain a broadly similar course over the following two years.

Unemployment, now below 10%, is expected to keep declining, while inflation is projected at 3% this year.