Greece has to meet its deadline of 30th June by when it has to pay the installment of €1.5 bn to IMF (total of €9.7 payable this year) or become the very 1st industrialized nation to default on its obligation. This has been made possible after Greece has asked IMF for a Zambia-style debt bundling of four June installments into one. The move to bundle up four separate June installment has helped Greece avoid immediate default.
A default on the 30th June deadline would probably constitute a default on the its European rescue loans and trigger a further crises by cancellation of all or part of its European Financial Stability Facility (EFSF). This may even mean the principal amount of the loan may be due immediately.
Greece's other creditor burden would also start piling up, with the government due to pay another €6.6bn to the European Central Bank in July and August.
"If Greece defaults to the IMF, then they are considered to be in default to the rest of the eurozone," says Raoul Ruparel, head of economic research at Open Europe.
Greece probably needs to prioritize between domestic creditors and the IMF. Whatever the choice, Greece will be in a tough spot.