Greece Fails To Make $1.8 Billion Repayment To IMF

Greece failed to meet the deadline and make its $1.8 billion repayment to the International Monetary Fund (IMF). Greece has requested for a last minute extension in order to raise more funds but given the fact that the country had sufficient notice to secure the loan re-payment amount of $1.8 billion, it is hard to imagine how the last minute extension request will help Greece.

However, the IMF has stated that it will consider Greece’s request and make a decision shortly. Greece has already been threatened of being thrown out of the European Union (EU) should it fail to make its repayment. It will now be up to the EU to make a final decision on Greece and decide if it will enforce its threat and expel Greece from the EU or if it will be sympathetic and work out a new repayment schedule with Greece.

Once it was confirmed that Greece has defaulted on its loan repayment, there was panic within the country as Greeks rushed to ATMs to withdraw as much money as they could. The Government immediately issued a withdrawal restriction and limited withdrawals to around sixty euros per day. Greeks will no longer be able to send money abroad or process any international payments without getting special permission.

A shoe seller in the United Kingdom has launched a Greek Bailout Fund on the IndieGoGo website in an effort to get each citizen of the EU to contribute three euros in an effort to bail Greece out. The website has so far raised $828,500 in 48 hours and has promised donors that the all donations will be refunded if sufficient funds are not raised before Sunday.