‘No default’ if Greece misses debt payments

Most top credit rating agencies say they would not cut Greece’s rating to default if it misses a payment to the IMF or ECB, a stance that could keep vital ECB funding flowing into the financial system. 

Greece owes nearly €1bn to the IMF this month and almost €7bn to the ECB over July and August and there are concerns the government, stuck in funding talks with official lenders, will miss the payments.

This would be an unprecedented move that could put Athens’ future in the euro in doubt and has raised questions about whether it could set off a chain reaction, possibly accelerating repayments due to other official and private sector creditors and compounding Greece’s problems.