Greek Crisis: Time’s Up! Deadline for Payment Missed

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The clock struck midnight in Athens and Greece became the first advanced country ever to fail to repay an IMG loan. It is now formally in arrears, having missed the deadline for the payment of €1.6bn.

This puts the country even closer to the Grexit, where it leaves the euro.

It’s not definite yet – Greece made a last-minute suggestion for a new bailout programme and Eurozone ministers will discuss this. But earlier today the chairman of the Eurogroup, Dutch Finance Minister Jeroen Dijsselbloem, said it would be “crazy” to extend the bailout beyond the midnight expiration, because the Greek government refused to accept the conditions being proposed.

So what next? Well, nothing will happen right away. Despite officially being in arrears, nobody is going to send in the bailiffs to start repossessing assets (is there anything to repossess?). Both sides will keep talking, trying to find a solution that will keep Greece in the euro.

We will just have to wait to see if they succeed. It could be that everything will wait for the result of Sunday’s referendum. But the next significant deadline is 20 July, when Greece must redeem bonds held by the ECB – €3.46bn’s worth. Failure to do that means the ECB can cut off the country’s access to emergency loans completely.

For more on the Greek debt crises, go to ADVFN’s Greek Crisis page: http://uk.advfn.com/greece-crisis.

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