Armed with new upgrades from the rating agencies and fiscal stability, the Greek government is setting its sights on the markets in 2025, seeking to raise €11 billion.

The Greek government's presence in the bond markets next year is expected to be more intense than this year, due to the increased financing needs of the state budget.

According to the Draft Budget Report submitted to the Parliament yesterday by the Minister of National Economy & Finance, Kostis Hatzidakis, the net borrowing of the state in 2025 will be almost double compared to this year and is projected to reach €8.5 billion from €4.07 billion in 2024. To cover its financing needs, the government will raise €11 billion from the bond market, up from around €9 billion it is expected to raise this year.

The increased borrowing needs in 2025 result firstly from the increase in the state budget deficit on a cash basis to about €4.4 billion from €3 billion in 2024. To the state budget deficit should be added another €3.7 billion, which relates to the loans from the Recovery Fund, and another €1.7 billion from the government's participation in equity increases of companies, etc. The net borrowing of €8.5 billion if added to the €5.5 billion in interest payments that the government has to pay to service the public debt, the total financing needs amount to €14 billion.

As stated in the Budget Explanatory Memorandum, €11 billion of these needs will be covered by long-term borrowing (recourse to the bond markets) and the remaining €3 billion by the use of the government's high reserves.