Greece repaid €2.5 billion to the European Financial Stability Facility (EFSF) yesterday, Thursday 1 October, using proceeds from the re-privatisation of Greek banks that had previously received support from the Financial Stability Fund (HFSF), the EFSF announced today.
“This repayment is yet another indication of the progress Greece has made in strengthening its economy and financial system. The proceeds from the re-privatisation of the banks are a tangible reflection of the recovery of the Greek banking sector following the crisis. Using part of these proceeds to repay the EFSF reduces Greece’s public debt and sends a message of confidence to the markets. This is a positive development for Greece,” said EFSF Chief Executive Officer Pierre Gramenia.
On 1 September, Greece informed the EFSF and the European Stability Mechanism (ESM) that the Hellenic Corporation of Assets and Participations (HCAP — following its merger with the HFSF) had approximately €4 billion in proceeds linked to the HFSF.
The EFSF and ESM have contractual repayment rights over HCAP’s proceeds from bank recapitalisation operations linked to their financing. The EFSF exercised its rights for an amount of €2.5 billion. The amount was allocated to the EFSF because the cost of its loans is higher than that of the ESM’s loans. The EFSF and ESM retain their rights over the remaining loans.
It is recalled that on 15 June, Greece proceeded with the early repayment of €6.94 billion in loans it had received under the first bailout programme (GLF). Overall, as announced, Greece will proceed with the early repayment of a total of €12.84 billion in public debt during 2026.
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