Greece debt crisis: IMF payment missed as bailout expires

Greece has missed the deadline for a €1.6bn (£1.1bn) payment to the Intersubject  Monetary Fund (IMF), hours subsequently eurozone ministers refused to extend its bailout.
But the ministers enjoin they volition hash out a last-minute asking from Hellenic Republic for a novel two-year bailout on Wednesday.
Greece is the get-go advanced land to neglect to repay a loan to the Intersubject  Monetary Fund as well as is straight off formally inwards arrears.
There are fears that this could place Hellenic Republic at run a jeopardy of leaving the euro.
The Intersubject  Monetary Fund confirmed that Hellenic Republic had failed to brand the payment, presently subsequently 22:00 GMT on Tuesday.
"We take accommodate informed our Executive Board that Hellenic Republic is straight off inwards arrears as well as tin exclusively have Intersubject  Monetary Fund financing i time the arrears arepellucided," said Intersubject  Monetary Fund spokesman Gerry Rice.

Greeks take accommodate been queuing upwards exterior banks as well as ATMs this week
Mr Rice confirmed the Intersubject  Monetary Fund had received a asking from Hellenic Republic to extend the payment deadline, which he said would become to the board "in due course".
With the eurozone bailout expired, Hellenic Republic no longer has access to billions of euros inwards funds as well as could non encounter its Intersubject  Monetary Fund repayment.
The European Central Bank (ECB) has likewise frozen its liquidity lifeline to Greek banks. Meanwhile, ratings agencies take accommodate farther downgraded the country's debt.

Analysis: Chris Morris, Europe correspondent
This is non how intersubject  diplomacy or finance is supposed to live conducted: a serial of confusing concluding infinitesimal proposals inwards an atmosphere of mounting chaos.
Without only about other bailout, Hellenic Republic is inwards dire straits - cutting off from all intersubject  financing, as well as skating on dangerously sparse ice.
If it can't repay a debt to the ECB on xx July, that would belike live the end. It is running out of options to proceed it inwards the eurozone.
Part of the novel bargain Hellenic Republic has suggested would involve a restructuring of its huge debts - but only about of its proposals volition non live acceptable to other eurozone countries. So at that place is doubtfulness at every turn, as well as enough of world posturing every bit Hellenic Republic prepares for a plebiscite on Sunday.
Just to throw matters yet further, only about European Union officials take accommodate suggested that at that place take accommodate been indications from the Greek authorities that if the outlines of a bargain tin live done inwards the side past side dyad of days, the plebiscite could fifty-fifty live cancelled.
Is Grexit nearer?
A direct to the cardinal numbers as well as issues

New bailout 'considered'
Eurogroup chairman as well as Dutch Finance Minister Jeroen Dijsselbloem before said it would live "crazy" to extend the Greek bailout beyond its Tuesday deadline every bit Athens was refusing to take the European proposals on the table.
Greece's left-wing Syriza government, elected on an anti-austerity platform, has been inwards deadlock alongside its creditors for months over the price of a tertiary bailout.
Speaking subsequently the conference phone phone alongside other eurozone ministers, Mr Dijsselbloem said that a Greek asking for a novel €29.1bn European assist plan would live considered inwards a phone conference on Wednesday.

A re-create of the Greek PM's missive of the alphabet on Tuesday requesting "stability support" to encompass Greece's debts
BBC economic science correspondent Andrew Walker says he understands Hellenic Republic may submit novel proposals on Midweek that rein inwards its spending.
Greece's asking on Tuesday asked for funds from Europe's bailout fund - the European Stability Mechanism - every bit good every bit a restructuring of Greece's world debt.
But German language Chancellor Angela Merkel before said she had ruled out farther negotiations until subsequently Sunday's referendum, which volition enquire Greeks if they desire to take the bargain offered past their creditors.
The Greek authorities took the unilateral determination to concur a vote concluding weekend, angering eurozone ministers.

What happens next?

• 1 July - Eurogroup - the finance ministers of the eurozone - holds a phone conference to hash out novel proposal from Greek Prime Minister Alexis Tsipras
• 5 July - Referendum on creditors' proposals takes place, which many enjoin is effectively a vote on Greek membership of the eurzone
• 20 July - Hellenic Republic must redeem €3.46bn of bonds held past the European Central Bank. If it fails to practise so, the ECB tin cutting off Greece's access to emergency loans

Meanwhile, the the States Treasury said on Tuesday it was urging all parties to press forwards alongside negotiations "that place Hellenic Republic on a path toward economical increment inside the eurozone".

The European Commission - i of the "troika" of creditors along alongside the Intersubject  Monetary Fund as well as the eurozone's European Central Bank - wants Athens to heighten taxes as well as cutting welfare spending to encounter its debt obligations.

Ratings way Fitch cutting Greece's assign rating from "CCC" to "CC" on Tuesday evening, which is i grade inwards a higher place a sum default.
Fears of a default on Greece's huge world debt of €323bn take accommodate led to long queues of people at cash machines. Withdrawals are capped at only €60 a day.

Tens of thousands of "yes vote" supporters braved the stormy weather condition on Tuesday
Greek banks did non opened upwards this calendar week subsequently talks betwixt Hellenic Republic as well as its creditors broke down.

However, upwards to 1,000 banking company branches were due to re-open on Midweek to permit pensioners - many of whom practise non purpose banking company cards - to remove upwards to €120.
On Tuesday evening, thousands of pro-EU protesters braved stormy weather condition as well as gathered exterior the
Greek parliament inwards Athens to urge a "yes" vote inwards a plebiscite on Sun over whether the land should take its creditors' proposals.

It follows a like demonstration past those advocating a "no" vote - the path preferred past Mr Tsipras - on Monday.
EU leaders take accommodate warned that a no vote rejecting creditors' proposals would hateful Hellenic Republic leaving the eurozone - though Mr Tsipras says he does non desire this to happen.
The ECB is believed to take accommodate disbursed most all of its emergency funds for Greece, amounting to €89bn (£63bn).



Lenders' proposals - cardinal sticking points

• VAT (sales tax): H5N1 novel organization to come upwards inwards from 1 July, alongside 3 rates, aimed at boosting annual revenue past 1% of sum output (GDP)
• Most goods to live taxed at pinnacle charge per unit of 23%, including restaurants as well as catering as well as processed foods
• Reduced charge per unit of 13% for basic food, electricity, hotels as well as water
• Super-reduced charge per unit of 6% for medicines, books as well as theatre
• End exemptions as well as eliminate VAT discounts for Greek islands
• Create potent disincentives to early on retirement
• Move retirement historic period upwards to 67 past 2022
• End Ekas "solidarity" top-up grant that only about 200,000 poorer pensioners acquire -  close Ekas cutting for wealthiest 20% of recipients, as well as cutting completely past 2020
• Pensioners' healthcare contributions to ascension to 6%, from 4%

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