Greece defaults on $1.7-billion IMF debt

Demonstrators gather during a rally organized by supporters of the ‘Yes’ vote for the upcoming referendum in front of the Greek Parliament in Athens, Tuesday, June 30, 2015. At midnight central Europe-time on Tuesday, the country is set to become the first developed nation to miss a debt repayment to the International Monetary Fund, as Greece sinks deeper into a financial emergency that has forced it put a nationwide lockdown on money withdrawals. AP

WASHINGTON, United States – Greece became the first developed country Tuesday to default on its debt to the International Monetary Fund, after missing a 1.5 billion euro ($1.7 billion) payment.

“I confirm that the SDR 1.2 billion repayment due by Greece to the IMF today has not been received,” said Fund spokesman Gerry Rice.

“We have informed our executive board that Greece is now in arrears and can only receive IMF financing once the arrears are cleared.”

After a long day of failed attempts to resuscitate its bailout financing deal with the European Union, Greece had made a last-minute request to the IMF to have the payment, due by 2200 GMT Tuesday, extended.

Rice confirmed the request but the board did not rule on it.

The extension request “will go to the IMF’s Executive Board in due course,” he said.