- The Greek government faces the prospect of becoming the first developed nation to ever default on its international obligations.
- After a harrowing five months, and in a drama of soft deadlines, the cash-strapped government now faces a €1.5bn payment to the International Monetary Fund due at 11pm tonight.
- With negotiations have broken off in dramatic fashion last week, a cacophony of voices on Syriza’s Left have vowed to prioritise domestic obligations unless creditors finally unlock the remainder of its €240bn bail-out programme.
- Greece only avoided going bust earlier this month after the government has asked for a Zambia-style debt bundling which will now be due on June 30.
- Greece owes €9.7bn to the IMF this year. Missing any instalment to the IMF would see the country fall into an arrears process, unprecedented for a developed world debtor.
- Although no nation has ever officially defaulted on its obligations in the post-Bretton Woods era, Greece would join an ignominious list of war-torn nations and international pariahs who have failed to pay back the Fund on time.
- Source: The Telegraph
What Happens If Greece Defaults on its IMF Loans?
