Greece Defaults on Debt

Greece has become the first developed country to technically default on its debt or fall into arrears on payments to the International Monetary Fund (IMF) since 2001. Zimbabwe fell into arrears in 2001. Greece passed through the midnight deadline for repayment of the €1.6 billion bundled loans due to the IMF.

Playing brinkmanship politics, Greece made a last minute effort to extend its bailout.

Gerry Rice, Director of Communications at the IMF issued a press statement, “I confirm that the SDR 1.2 billion repayment (about €1.5 billion) due by Greece to the IMF today has not been received. We have informed our Executive Board that Greece is now in arrears and can only receive IMF financing once the arrears are cleared.”

He added, “I can also confirm that the IMF received a request today from the Greek authorities for an extension of Greece’s repayment obligation that fell due today, which will go to the IMF’s Executive Board in due course.”

Germany and France are the biggest holders of Greek debt.

Capital Controls

The Greek government imposed capital controls. The government closed banks until after a July 5th referendum that deals with European creditors.

Greek PM Tweets – July 1, 2015

Screenshot of Tweets on July 1, 2015 by Greek Prime Minister Alexis Tsipras

Screenshot of Tweets on July 1, 2015 by Greek Prime Minister Alexis Tsipras

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