Greece Becomes First Developed Country To Default To The IMF

Greece has now passed the midnight deadline for repayment of the €1.6 billion bundled loans due to the IMF and in thus in default.

Yes we are fully aware that using the pejorative term ‘default’ makes us members of the ignorati, but what else do you call it when you fail to pay back a contracted debt in a timely fashion? (and don’t say ‘arrears’) Anything else is semantics.

• *IMF SAYS GREECE FAILED TO MAKE PAYMENT DUE TUESDAY
• *IMF TO CONSIDER GREEK REQUEST FOR PAYMENT DELAY IN DUE COURSE
• *IMF BOARD INFORMED THAT GREECE IS NOW IN ARREARS

“I can also confirm that the IMF received a request today from the Greek authorities for an extension of Greece’s repayment obligation that fell due today, which will go to the IMF’s Executive Board in due course,” IMF spokesman Gerry Rice says in e-mailed statement.

This is the first time an advanced economy has defaulted to The IMF and is by far the largest default The IMF has ever faced.

Below is the full list of countries who are (ahem Zimbabwe) or have been in “protracted arrears” to the IMF in the past. Greece is now officially on this list.

 

What happens next: