The following are the top stories in the Maltese and overseas press:

Times of Malta reports how Greece defaulting on its IMF debt. It also focuses on court proceedings involving Mark Gaffarena and the controversial expropriation of his property ownership in Valletta.

The Malta Independent reports on a call for investigation into alleged abuse of power in the granting of a permit for rural property development  by Parliamentary Secretary Ian Borg.  

Malta Today says Greece was denied a last minute deal. It also reports on yesterday's appearing of Austin Gatt before the Public Accounts Committee.

In-Nazzjon carries comments by the estranged wife of former police inspector Daniel Zammit saying she too was deceived by him.

l-orizzont says Simon Busuttil had a salary of €40,000 as head of the Malta Information Centre before Malta joined the EU.

The overseas press

Greece has started the day without the protection of a bailout programme from its eurozone neighbours – with its banks closed, capital controls in place, and a looming referendum – after missing the deadline to make a €1.6-billion payment to the IMF, putting it in default on its debt. The Wall Street Journal reports IMF confirmed that Greece did not make its loan payment, but also said Athens had made a request to extend the payment. The board would consider that request “in due course”.  

Greece also asked eurozone countries for a new funding mechanism with no ties to the IMF and worth nearly another €30 billion over two years, but was quickly rebuffed ahead of this weekend’s referendum. Berliner Zeitung says German chancellor Angela Merkel was determined in her reaction: “We’ll negotiate about absolutely nothing before the planned referendum is held,” she said.

Meanwhile, AFP quotes a Greek government source confirming eurozone finance ministers will resume talks on the Greek crisis late today after refusing the country’s request for a two-year financial aid package.

The Financial Times writes Greece suffered its second sovereign downgrade in as many days, as Fitch ratings agency slashed the country’s rating further in junk status, from CCC to CC. The decision follows a similar action by Standard & Poor’s. The rating is one notch above the level where Fitch says default is inevitable.

Reuters reports thousands of Greeks worried about the prospect of crashing out of Europe’s currency union rallied in Athens yesterday behind a “Yes”. Many carried EU flags and chanted “Greece, Europe, democracy!” Turnout was comparable to the “No” camp’s own rally a day earlier in support of left-wing Prime Minister Alexis Tsipras.

Fox News says the United States and Cuba have reached agreement to re-open embassies in Washington and Havana – the culmination of a process begun last December when President Obama and Raoul Castro announced a thaw in diplomatic relations. A formal announcement is due later today.

AFP announces China has confirmed it would try to cap its rising emissions before 2030 while the US and Brazil pledged to boost renewable energy sources in a series of announcements yesterday in anticipation of a global climate pact in Paris. South Korea, Serbia and Iceland also presented climate targets for the deal that’s supposed to be adopted in December as part of a UN effort to protect the planet from global warming.

Jakarta Post reports rescuers with heavy machinery searched a shattered residential neighbourhood Tuesday for any survivors from an Indonesian air force transport plane that crashed shortly after takeoff and killed more than 141 people, including residents on the ground. Reports suggested the plane, a C-130 Hercules, suffered an engine fire before crashing.

ABC says Australian authorities have ended a 15-hour prison riot involving up to 300 inmates in Melbourne suspected to have been triggered by a ban on smoking. Riot police armed with batons and shields, dog squad units and critical incident officers with body armour and tear gas were sent to quell the riot.

Yemen’s Saba news agency reports about 1,200 prisoners, including al-Qaeda suspects, have escaped from a prison in the central town of Taiz after clashes with the wardens. The country was thrown into turmoil after Houthi rebels forced President Abdrabbuh Mansour Hadi to flee to Aden and then to Saudi Arabia. It is not clear how the prisoners escaped.

The Star reports Islamic State militants have beheaded two women in Syria for witchcraft and sorcery – the jihadists’ first known decapitation of female civilians. Each woman was killed along with her husband in executions on Sunday and Monday after they were found in possession of charms – a practice considered heretical by IS, which imposes its harsh interpretation of Islam on the areas under its control.

Hollywood Reporter says actors Ben Affleck and Jennifer Garner have announced they are to divorce after 10 years of marriage. In a joint statement, the couple said the decision was made after “careful consideration” and that they would share their responsibilities to their three children. Sources said the divorce is amicable.

Football: Montreal Gazette reports the veteran US women’s soccer side earned another chance at World Cup glory, reaching the final for the second time in a row by beating top-ranked Germany 2-0. Japan and England meet in the other semi-final later today in Edmonton. The final will be played on Sunday in Vancouver. FIFA president Sepp Blatter will not attend “for personal reasons”. 

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