It’s official: Greece will not pay back the 1.5 billion euros it owes to the International Monetary Fund. Instead, it will default to the IMF on Tuesday.
A spokesperson for Finance Minister Yanis Varoufakis confirmed to CNN the payment would not be made Tuesday. This makes the island nation the very first developed country to default to the IMF.
The announcement further exacerbates Greece’s economic collapse. Nevertheless, various Greek officials are holding last-minute negotiations with numerous EU leaders as part of efforts to resuscitate bailout initiatives.
Greek Prime Minister Alexis Tsipras has contacted EU Commission President Jean-Paul Juncker and European Central Bank President Mario Draghi.
The current bailout agreement with the EU expires Tuesday, which then allows Greece to be on its own.
Tsipras may resign if Greeks overwhelmingly support a referendum that would see Greece accept money in exchange for domestic reforms. The Greek PM has repeatedly called the proposal a way to enslave the Greek people. Many feel the outcome of the referendum Sunday could determine the fate of the eurozone.
In the meantime, banks remain closed and Greeks are only permitted to withdraw 60 euros from ATMs as the financial institutions shut.
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