Entering 2026 with a cash buffer of more than €39 billion, the Greek Public Debt Management Agency (PDMA) is positioning the country with a high degree of financial flexibility, reinforcing the ability of Greece to withstand potential turbulence in international markets.
This substantial reserve acts as a key liquidity backstop, reducing refinancing risk and allowing authorities to maneuver more freely in their funding strategy. It also provides a safeguard in the event of a deterioration in global financial conditions, at a time when geopolitical uncertainty and shifting monetary policies continue to weigh on markets.
According to the PDMA’s forward planning, 2026 will not be characterized by heavy or aggressive borrowing. Instead, the focus is on consolidation and risk management, with an emphasis on maintaining Greece’s hard-won credibility among international investors. The country is expected to remain present in global bond markets in a steady and selective manner, with issuance calibrated primarily to preserve liquidity across the yield curve rather than to raise large volumes of new debt.
Current projections point to medium- and long-term bond issuance of around €8 billion during the year. This will be combined with active management of the existing debt stock, including early repayments of older and more expensive obligations, further improving the overall cost and risk profile of public debt.
Fiscal discipline remains central to the strategy. Authorities plan to continue generating primary surpluses while steadily reducing the debt-to-GDP ratio, which is expected to fall to around 138% in 2026 from levels above 200% in 2020. This sharp improvement reflects not only economic recovery but also structural features of Greece’s debt, including low servicing costs, long average maturities and the predominance of fixed-rate instruments, which significantly limit exposure to interest rate volatility.
Another priority is the further diversification of the investor base, with a particular focus on attracting long-term institutional investors. This effort is closely linked to preserving the confidence restored after Greece regained investment-grade status, a milestone that has reshaped perceptions of the country’s sovereign risk.
State guarantees, meanwhile, will continue to be closely monitored in 2026 but are not expected to play a central role in the financing strategy. The emphasis remains on prudent debt management and careful use of cash reserves, while guarantees are treated as contingent liabilities that must be prevented from turning into material fiscal risks.
