In particular, while official loans have been supplied with low interest rates, there is a ‘hill effect’ from 2022 onwards, i.e., by the time that interest payments rise significantly due to the beginning of repayment of deferred interest for EFSF loans.
•  Taking into account that Greece will have to refinance maturing debt at higher market rates over the next few years, the interest-to-GDP ratio is projected to increase significantly from 2022 onwards to likely 6% of GDP under reasonable interest rate scenarios. This will impose significant challenges to debt sustainability looking forward.