Greece becomes first developed nation to default IMF debt [ Current Affairs ]

()

Greece has become the first developed nation to default on a 1.7 billion dollars payment to International Monetary Fund (IMF) debt. The Greek finance minister Yanis Varoufakis said that Ambrose Evans-Pritchard of his country is ready for an economic siege. The deadline for debt payment was missed by Greece after Eurozone Finance Ministers refused to extend its bailout.

  • Greece is now formally in arrears and there are fears that this could put Greece at risk of shifting back to its old currency Drachma by leaving the Euro.
  • They had refused the bailout after Greece rejected the proposal given International Monetary Fund (IMF), European Central Bank (ECB) and the European Commission (EC).
  • Mr Varoufakis who is Greek finance minister appointed special five-man committee from the Greek treasury. ECB (European Central Bank) also has frozen its liquidity lifeline to Greek banks.
  • Greece has stockpiled enough reserves of fuel and pharmaceutical supplies to withstand a long siege. Greek finance minister Yanis Varoufakis also has set aside emergency funding to cover all the country’s vitally-needed food imports.
  • The Greece is strategically located at the crossroads of Europe, Asia, and Africa which Situated on the southern tip of the Balkan Peninsula.

- Published on: July 6, 2015