Greece bailout deadline expires
Greece’s international bailout has expired, and with it any access the country could have to existing financing from its eurozone partners and the International Monetary Fund.
At the same time, the country defaulted on a roughly €1.6 billion IMF debt repayment, becoming the first developed country to fall into arrears on such payments.
The last country to do so was Zimbabwe in 2001.
After Greece made a last-ditch effort to extend its bailout, eurozone finance ministers decided in a teleconference late today that there was no way they could reach a deal before the deadline.
“It would be crazy to extend the programme,” Dutch finance minister Jeroen Dijsselbleom, who heads the eurozone finance ministers’ body known as the eurogroup, said earlier. “So that cannot happen and will not happen.”
The brinkmanship that has characterised Greece’s bailout negotiations with its European creditors and the IMF rose several notches over the weekend, when prime minister Alexis Tsipras announced he would put a deal proposal by creditors to a referendum on Sunday and urged a No vote.
The move increased fears the country could soon fall out of the euro currency bloc and Greeks rushed to pull money out of ATMs, leading the government to shutter its banks and impose restrictions on banking transactions for at least a week.
But in a surprise move tonight, Greece’s deputy prime minister Yannis Dragasakis hinted that the government might be open to calling off the popular vote, saying it was a political decision.
The government decided on the referendum, he said on state television, “and it can make a decision on something else”.
It was unclear, however, how that would be possible legally as parliament has already voted for it to go ahead.
