Greece defaults on debt repayment

Posted By: KLKN Newsroom
8@klkntv.com

The midnight deadline has passed, and Greece has defaulted on a critical debt payment. The country has failed to repay a loan due to the International Monetary Fund, deepening fears over whether it will be able to remain in the eurozone. 

Greece owes $1.8 billion to the IMF. Now, the Greek government is asking for a new two-year bail out deal. Greece became the first developed country to fail to pay a debt to the IMF. The last country to do so was Zimbabwe in 2001. 

The government has shut down banks and limited cash withdrawals at ATM’s to $67 a day and cannot send money abroad or make international payments without special permission. 

Greece’s prime minister has scheduled a referendum on Sunday that would allow the Greek people to have a say on whether the country continues to use the Euro as its currency.