Greece becomes first developed nation to default on international obligations
Greece has missed its June deadline to pay €1.6 billion to the IMF, becoming the first developed country to default on its international obligations.
The news hardly comes as a surprise. On Tuesday, Greek Finance Minister Yanis Varoufakis told journalists that Athens would not repay the €1.6 billion IMF debt on time.
Skipping a payment to the IMF is referred to as arrears – owed money that should have been paid earlier – in the terminology of the Fund. It should be officially reaffirmed by the IMF chief Christine Lagarde who in a month should notify the Executive Board of the Fund.
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