Greece yesterday proceeded with an early repayment of EUR 5.3 bn in bailout loans

Macro/Political:

• Greece yesterday proceeded with an early repayment of EUR 5.3 bn in bailout loans under its first bailout programme, according to government spokesman Pavlos Marinakis. He added that the repaid loans were originally scheduled to mature in 2031.This payment would allow Greece to save EUR 1.6 bn in interest payments until 2041 and lower its debt to below 120% of its economic output by 2029.
  Source: Reuters 

• Greek government moved quickly on Monday to respond to farmers’ demands, formally inviting them to dialogue through Agriculture Minister Kostas Tsiaras, as nationwide protests and road blockades continue. For the government, the overriding concern is to keep roads open during the holiday period. Officials view the smooth functioning of the economy, particularly in regions where festive-season activity accounts for up to 40% of annual GDP, as a top priority.
  Source: Kathimerini

• DoValue has secured readiness and is expected to proceed with the completion of two major transactions with a total value exceeding EUR 1.7 bn. These two debt packages will, for the first time, repay the high-yield bonds held by Eurobank and will reduce the burden of the Hercules government guarantee scheme. The two loan portfolios involved are Giza and Alexandria. The sale of these portfolios will benefit both Eurobank and the Greek government, which has provided the guarantees.
  Source: Capital.gr 
  

Macro/Political: 

• Cyprus and France signed a new strategic partnership at the Élysée Palace in Paris on Monday, declaring their unwavering commitment to substantially strengthening bilateral relations. French President Emmanuel Macron described the agreement as an important step, noting that France is the only European Union member state with which Cyprus has such a strategic partnership. In addition, the two countries signed a Strategic Declaration and an accompanying 2026–2030 Action Plan, which immediately initiates a substantial upgrade of the Mari Naval Base to facilitate the permanent presence of French warships in the Eastern Mediterranean.
  Source: Cyprus Mail
  

• Cyprus President Nicos Christodoulides proposed a step-by-step plan to reduce tensions with Turkey and benefit both sides in an interview with Politico. He suggested that Turkey could allow Cyprus to join the Partnership for Peace (PfP) program, widely seen as a first step toward NATO membership, in return for Cyprus gradually lifting barriers to closer EU–Turkey cooperation.
  Source: Kathimerini
  

• In August 2025, the number of building permits authorized by the municipal authorities in Cyprus stood at 647. During the period January – August 2025, 4,842 building permits were issued compared to 5,062 in the corresponding period of the previous year, recording a decrease of 4.3%. The total value of these permits increased by 12.3% and the total area by 16.1%. The number of dwelling units recorded an increase of 14.6%.
  Source: CyStat