The Greek government says it will not be paying the 1 point 6 billion euro it owes to the International Monetary Fund by the end of the day Tuesday.
It coincides with the expiration of Greece current economic bailout programme which negotiators are working hard to extend though a deal remains unlikely.
The Greek people will be asked to vote in a referendum on whether to accept the terms of a deal by the international creditors Sunday.
Defaulting of the IMF repayment could begin the process of Greece exiting the single currency euro causing major concerns about contagion internationally.
Peter Spiegel is the bureau chief of the Financial Times in Brussels and says the pressure is building.
IN: "It's not..."
OUT: "..knock on effects"
DUR: 34 secs
ALT
Peter Spiegel is the bureau chief of the Financial Times in Brussels and says international partners are not as concerned about contagion as they were in 2012.
IN: "What struck..."
OUT: "...coming weeks."
DUR: 38 secs