We must also understand that a no vote in Sunday’s referendum would mean that Tsipras would lose and negotiations should commence. However, in event of winning, Greece will have to exit the Euro. Uncertainty means that there are flights of capital and increased negativity in the markets with more sell offs. This is coupled with Greek banking restrictions taking cash out, with limits at sixty Euros a day and many not being able to afford their daily life spends without this capital.
This is the Tuesday where a €1.6bn debt repayment to the IMF falls due. It remains to be seen whether this will be paid and the IMF has said that there will not be a grace period on this amount due. Being the first major economic country to default could mean that there will be a change on the world stage of who will trade and how they will do it, alongside potential distrust amongst economies. Other less developed countries that have defaulted previously have included Sudan, Zimbabwe and Somalia but there has never been an event similar to a Greek default.
Any fallout remains to be seen and all are waiting to see how it will play out on the world stage. There are widespread fears of bailout as has been seen by the time and effort gone to promoting a last minute bailout which we have written about extensively. The clock is ticking and it looks like we may get some clarity soon.