The massive EUR 1.70 billion repayment due to the IMF today will not be made according to Greek government officials, paving the way towards default on other obligations. Although it will not necessarily be deemed a default according to the IMF, it will place increased pressure on European policymakers to potentially return to the negotiating table as the rising costs of a Greek referendum could place the European Union’s credibility at risk. Meanwhile, as the Greeks enter day two of capital controls, the ECB has placed a cap on further Greek ELA distributions which could spell the end of any remaining solvency for Greek banks. However, the unfolding situation is proving a boon for the European Central Bank, paving the way for increased monetary accommodation with the Central Bank making preparations to expand the quantitative easing program to include other assets. European benchmarks plunged on the uncertainty, with the French CAC 40 giving up -3.74%.