The clock struck midnight in Brussels, 1:00 in Athens and 18:00 in Washington. Greece did not pay the ~1.5 billion euros it had to pay the IMF after bundling June’s payments. This can be called “arrears” and not “default”, or just that the Greece did not pay the IMF on time.
Update: the IMF officially confirms the non-payment and more interestingly notes that Greece has asked for an extension of the repayment and that this request will be considered “in due course”. Given the recent IMF stance, this seems unlikely.
Intense negotiations, including a last minute 3rd bailout request from Greece were not fruitful. A request to temporarily extend the bailout for a few more days until the Greferendum also failed.
Greece told the Eurogroup that upon a new agreement it could either support a Yes vote in the referendum or just call it off.
Midnight in Brussels also means that the second bailout program has expired as no extension was granted.
The Eurogroup will convene tomorrow morning once again for another round of remote talks, at 9:30 GMT.
EUR/USD is currently trading at 1.1140, very stable in recent hours after having seen some action earlier.
Greek crisis – all the updates in one place
Here is the official IMF statement:
“I confirm that the SDR 1.2 billion repayment (about EUR 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.
“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.”
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