The IMF announces that Greece did not make a 1.5 billion euro payment to the Fund, putting Athens in uncharted territory. Deborah Lutterbeck reports.
It's official. The IMF announces that Greece did not make a 1.5 billion euro payment to the Fund. In a statement, the IMF said it did receive a request for an extension of the repayment -- and the IMF board says it will consider that request "in due course." It's the first time in the history of the IMF that an advanced economy has defaulted on a loan from the world's financial backstop -- putting Athens the same bracket as Zimbabwe, Sudan and Cuba. Already the imposition of capital controls to prevent the a banking system collapse has given Greeks a bitter foretaste of the economic plunge that could follow if it exits from the euro. Withdrawal limits of 60 euros a day have been fixed for cash machines. So far, there are no immediate signs of serious shortages, but if the banks remain closed, cash flow problems could worsen as Greece moves into uncharted territory.