It′s official.
Greece has defaulted on its almost one-point-eight billion U.S. dollar loan payment to the International
Monetary Fund,… after eurozone ministers refused to extend its bailout program.
Athens is now seeking a new bailout scheme, but that, too, is highly unlikely to be
accepted by its creditors. Han Da-eun reports. Last-minute talks
were no use in saving Greece from defaulting on its debt.
The European Commission, one of the troubled nation′s three creditors, along with the
European Central Bank and the International Monetary Fund,… urged Prime Minister Alexis
Tsipras to accept the bailout terms,… but Tsipras responded with a counterproposal
at the last minute, asking for a short-term extension of the bailout program that also
involves debt restructuring. Eurozone ministers held an emergency teleconference
to assess the new proposal, but their final answer was a no.
With the bailout program′s expiration,… Greece officially defaulted on its one-point-seven
billion dollar payment to the IMF,… becoming the first developed nation to miss a loan
payment to the financial watchdog. Greece′s credit ratings were slashed to
junk status,… with Standard & Poor′s downgrading its sovereign rating to CCC-…
and Fitch cutting credit ratings on four Greek banks four notches to ″restricted default.″
The IMF, for it′s part, didn′t use the term ″default″ and instead said…
that ″Greece is now in arrears and can only receive IMF financing once the arrears are
cleared.″ Meanwhile, Athens is pushing for a separate
29-point-one-billion-euro aid program, a proposal that is expected to be discussed
by the eurozone ministers on Wednesday. But it′s likely to be tough going, as
Germany, Greece′s biggest creditor nation, has said it will not consider a third bailout
until after Athens′ critical referendum on the bailout terms that′s slated for Sunday.
Han Da-eun, Arirang News.