Greece has missed the deadline for its €1.5bn (£1.1bn) repayment to the International Monetary Fund.
It is the first developed nation to fail to reimburse the crisis lender. The Greek government, led by Prime Minister Alexis Tsipras, asked eurozone authorities for an extension on Tuesday, when the embattled nation’s deal expired.
But in a statement issued by the IMF on Tuesday night, it confirmed that Greece had failed to come up with the money.
IMF director of communications Gerry Rice says: “We have informed our Executive Board that Greece is now in arrears and can only receive IMF financing once the arrears are cleared.
“I can also confirm that the IMF received a request today from the Greek authorities for an extension of Greece’s repayment obligation that fell due today, which will go to the IMF’s Executive Board in due course.”
The European Central Bank has also frozen its lifeline to Greek banks and ratings agencies have once more downgraded the country’s debt, according to BBC News.
Eurozone policymakers say they will discuss the situation today but fears are rising that the country will be forced to leave the euro. On 20 July Greece must also redeem €3.46bn of bonds held by the European Central Bank.
On Sunday a referendum is taking place in Greece over whether the country should accept the creditors’ proposals but PM Tsipras has called on voters to reject the deal.