Greece default closer amid warnings of “social explosion”
A default by Greece would not only reverberate throughout Europe but could have a major impact on American banks and financial institutions which, while not heavily involved in direct loans, face large payouts on credit default swaps if bankruptcy is declared. - Leaders of the political parties comprising the Greek coalition government will meet the premier, Lucas Papademos, later today to give him their reply to demands for sweeping austerity measures in return for a further €130 billion in bailout loans. If agreement to the demands, imposed by the so-called troika—the European Commission, European Central Bank and International Monetary Fund—is not forthcoming, Greece could default on its loans as early as next month.