Greece Defaults

June 30th, 2015

Via: USA Today:

Greece’s midnight deadline passed Tuesday for repaying $1.8 billion to the International Monetary Fund and other international creditors, deepening a financial crisis that threatens the Mediterranean nation’s membership in the European Union.

Despite an eleventh-hour effort by Greek lawmakers Tuesday to secure a new two-year debt deal before the deadline, European finance ministers reviewing Greece’s proposal concluded their conference call without offering a bailout extension.

The ministers agreed to convene again Wednesday to further discuss the details of a new series of loans from the eurozone’s European Stability Mechanism, its $560 billion rescue fund.

After the deadline passed (at 6 pm ET), Greece joined Zimbabwe, Sudan and Somalia in being in arrears to the IMF. Fitch Ratings has downgraded Greece’s government debt further into junk territory.

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