ATHENS, Sept. 16 (Xinhua) -- Greece formally submitted a request to the European Stability Mechanism (ESM) and the European Financial Stability Facility (EFSF) on Monday for the early repayment of part of the International Monetary Fund (IMF) loans granted to the country under its bailout agreements, the country's Finance Ministry announced.
Finance Minister Christos Staikouras sent letters to the ESM and the EFSF after briefing the Eurogroup members last Friday, according to an e-mailed press statement presenting Athens' plan for an early repayment of 2.9 billion euros (3.19 billion U.S. dollars) carrying 5.13 percent interest.
"This step is of great significance for the country and its economy because it will strengthen its credibility and confidence and will save about 70 million euros," the statement read.
"It will also improve indexes regarding the sustainability of the state debt and will have an immediate positive effect of the country's credit ratings," the Greek Finance ministry stressed.
The process is expected to last around two months and will reduce the weighted average interest rate of IMF loans to Greece to below 3 percent, the Greek national news agency AMNA noted.
In August 2018, Greece exited its third bailout program since 2010 and is gradually returning to the international markets. (1 euro= 1.10 U.S. dollar)
