Greece is no stranger to defaulting on its debt. In 2012, Greece technically defaulted, which caused the country to restructure $138 billion of its debt. On June 30, the troubled country is expected to default on $1.7 billion debt payment owed to the International Monetary Fund (IMF). If Greece defaults on its entire debt-load of $380 billion, it would make the largest sovereign default in history.
Greece and its European creditors have locked horns over austerity conditions imposed on the troubled country by the terms of the bailout. Greece imposed the austerity conditions until January when Greeks elected the far-left Syriza party, which promised to fight such conditions. Greek Prime Minister Alexis Tsipras has, so far, lived up to such promises. Tsipras has resisted extending any debt deals that imposed the same austerity conditions and has called for a referendum. Greeks are expected to vote on the latest proposal from it's creditors on July 5, almost a week after the next debt payment is due. It is widely expected that Greece will default on it's debt and will possibly fall out of the Euro. No country has left the Euro since its creation 16 years ago.
After debt talks broke down this past week, Greeks made runs on banks and ATMs causing the Greek government to institute capital controls. At current, Greeks are only allowed to withdraw $66 per day and all banks will be closed until at least July 5th. The Greek stock market is also expected to remain closed until that time, as well. Experts fear that the current financial crisis will lead to social unrest.
The Greek government has threatened to sue EU institutions should they force Greek out of the Euro.
"The Greek government will make use of all our legal rights," said the finance minister, Yanis Varoufakis.
"We are taking advice and will certainly consider an injunction at the European Court of Justice. The EU treaties make no provision for euro exit and we refuse to accept it. Our membership is not negotiable," said Varoufakis.
The Greek crisis has rattled financial markets across the globe and has caused anxiety amongst investors. The world will undoubtedly be watching Greece's actions tomorrow and over the next week.