How does Greece achieve budgetary savings thanks to ESM and EFSF loans?
The ESM and EFSF have provided loans to Greece at much lower interest rates and with exceptionally long maturities compared to those that the market would offer. These favourable lending terms have generated considerable budgetary savings, facilitating fiscal consolidation and/or tax cuts. The amount of savings is calculated by comparing the effective interest rate payments on ESM and EFSF loans with the interest payments Greece would have paid had it covered its financing needs in the market. In 2017 the savings amounted to €12 billion, or 6.7% of Greek GDP. The savings take effect at similar level every year.