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. (Read more Greece bailout stories.)