When Zimbabwe failed to repay its debts to the International Monetary Fund(IMF), it set a precedent for what Greece in the contemporary times. Greece owes about 1.6 billion euros or $1.8 billion to the IMF.
Greece faces the situation of facing an exodus from the Euro currency bloc if it fails to repay the debt. Failure to repay the debt is also going to mean no more loans from IMF for Greece for some time. In a way, Greece is on the way to miss funds worth 16 billion Euros or $18 billion from the IMF.
The realization of the critical economic condition in the country created a panic among Greek citizens as they rushed to withdraw money from ATMs. The government had already drawn the shutters on all banking institutions in the country.
Strict restrictions were imposed on the amount of money that can be withdrawn or even sent abroad. To make any kind of international payments, the Greeks have to obtain special permission. Greeks can now withdraw only 60 Euros or $67 per day.
Several European nations have come forward to aid Greece recover from the mess it finds itself in. There have been negotiations for a bailout by countries of Europe, but a consensus has not been reached yet.
This has paved the way for Greek withdrawing from the Euro zone. Finance ministers of member nations are not in favour of extending the June 30 deadline for negotiations of giving a bailout package to Greece at any cost.
The versatility of the situation assumed new proportions when Greek Prime Minister Alexis Tsipras said a proposal to set out a deal between nations of EU and Greece is to be decided by a referendum.
Deputy Prime Minister Yannis Dragasakis came to the rescue when he said the government was not in favour of a referendum. The decision was to be taken by the politicians of the country.
Greece plans to tap into the European Stability Mechanism, a fund set apart to aid countries like Greece. Over the years, Athens has accumulated a debt of more than 300 billion euros, which is about 180 per cent of the GDP of Greece.