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 ATHENS, June 29 Greece will not pay a 1.6 billon euro loan installment due to the International Monetary Fund on Tuesday, a Greek government official confirmed on Monday, highlighting the depth of the financial crisis facing the country. 
 
 Ministers have said repeatedly that Greece would not have the funds to pay the IMF unless it reached a deal with creditors to unlock 7.2 billion euros in bailout funds frozen while the two sides wrestled over the conditions demanded of Athens. 
 
 After talks broke down at the weekend, triggering the imposition of capital controls on Greek banks, it became a virtual formality that the IMF's June 30 deadline would not be met. 
 
 IMF Managing Director Christine Lagarde earlier this month said Greece would be in default as of July 1 if it failed to the pay the money, though an IMF spokesman last week said a missed payment would classify Greece as "in arrears". 
 
 The missed payment would bring Greece closer to an exit from the euro zone currency if it prompted the European Central Bank to cut off emergency funding that Greek banks rely on. But the ECB is expected to maintain that lifeline at least for this week and analysts say Greece could default and remain in the euro. 
 
 Despite the shock of a default by a euro zone country, Greece's fate is likely to remain unchanged until after a snap referendum on July 5 on bailout terms presented by creditors in exchange for aid. 
 
 Euro zone policymakers have warned Greeks that a "no" vote against the aid package would be tantamount to a rejection of engagement with creditors and point towards a euro zone exit. (Reporting by Lefteris Papadimas, writing by Deepa Babington; editing by Philippa Fletcher) ||||| Greece has shut down its banking system for six days and imposed capital controls after the European Central Bank opted not to expand a lifeline of emergency funds. Charles Forelle assesses whether a bailout deal is still possible. 
 
 European leaders appealed to Greeks to vote “yes” in a referendum on their country’s bailout, warning that the risk of Greece’s exit from the euro was real, as Athens confirmed it wouldn’t be able to make a loan repayment to the International Monetary Fund due on Tuesday. 
 
 The Greek government’s decision to call a vote on measures its creditors demand in return for more bailout aid has cast the country into uncharted waters. As of Tuesday, Greece will be cut loose from international rescue loans for the first time in more...
– As predicted, Greece doesn't have the funds to pay back a $1.8 billion euro loan installment by tomorrow's International Monetary Fund deadline, a government official there confirmed today—meaning the country may now be one step "closer to an exit from the euro zone currency," as Reuters puts it. Echoing that: Standard & Poor's today cut Greece's credit rating by one notch further into junk status, and put the chance of Greece exiting the eurozone at 50-50, reports the AP. S&P put out a statement saying that the decision to hold a July 5 referendum suggests the country "will prioritize domestic politics over financial and economic stability, commercial debt payments, and eurozone membership." European leaders are urging Greeks to vote "yes" in that referendum on bailout conditions, the Wall Street Journal reports. "You shouldn't commit suicide because you're afraid of dying," the European Commission president urged Greek citizens, per the newspaper. Although the European Central Bank is expected to cut off the emergency funding required to keep Greece's banks afloat following the missed payment, analysts tell the news agency they think the ECB will keep money flowing at least through this week.