Greece Effectively Defaults

Greece Effectively Defaults

June 30th has come and gone, and with it the official deadline for Greece’s $1.7 billion interest payment to the IMF on its post-crisis bailout loan, the New York Times reports.

The deadline passed after a last-minute attempt to come to an agreement on an extension of the bailout terms which Greece’s creditors roundly rejected.

While the default itself presents no clear threats to the nation’s financial status, it serves as an impediment to any further aid from either the IMF or the European Union.

Greece’s internal financial stability continues to crumble under the weight of a heavy entitlement state which is unsustainable without either drastic austerity measures or a steep increase in taxes, both of which pose a threat of further civil unrest.