Greece maintains cash reserves valued at 40 billion Euros

Greece possesses a cash reserve totalling €40 billion

Greece, once a country in the throes of a debt crisis, is now making significant strides towards financial recovery. The country regained its "investment grade" status for creditworthiness from rating agencies in 2023, marking a turning point in its economic journey.

This new status has led to a significant drop in Greece's borrowing costs. The Greek government is now expected to repay the loans from the first bailout package ten years earlier than scheduled, a testament to its improved financial health.

The Greek economy is showing robust growth, with an expected expansion of 2.3 percent this year, more than twice the average of the eurozone. This growth is largely driven by the tourism sector, which is approaching its pre-crisis size.

Despite this progress, Greece remains the most indebted country in Europe. However, the government is taking active measures to reduce its debt level. Greece has around €40 billion in liquidity reserves, and plans to use these reserves, along with fiscal consolidation measures, privatizations, and improved tax collection, to reduce its debt.

Greece's debt-to-GDP ratio has fallen by around 50 percentage points to 153.6 percent last year. This reduction is a positive sign of the country's financial recovery.

In addition to these efforts, Greece aims to reduce its debt faster. Part of its cash reserves will be used for this purpose. The country plans to raise €8-9 billion in the bond markets next year, and has enough cash reserves to cover its financing needs for at least three years without borrowing from the bond markets.

This continued recovery has not gone unnoticed. Insiders now refer to Greece as a state with a comfortable financial cushion. The Greek government plans to issue bonds as usual, demonstrating its confidence in the country's financial stability.

It's important to note that Greece has received around €280 billion in rescue funds during the debt crisis of the past decade, and has had a total of three bailout packages. However, the country is now in a position to repay €5.3 billion from its first 2010 bailout package to its Eurozone partners in December.

This news highlights Greece's continued recovery from the debt crisis of the past decade, a testament to the country's resilience and determination to regain its financial footing.

Sources: ntv.de and gri/rts.