Last Tuesday, Greece was supposed to pay back more than a billion dollars in loans to creditors. But Athens had no money left and the debt was not honoured.

Last weekend, creditors asked for a few things before signing another agreement to lend the country more money (more taxes, pension cuts, etc.). However, these terms didn’t go down well with Greek Prime Minister Alexis Tsipras, who said that Greece won’t give in to blackmail.

Now that the bailout has expired... what happens?

Greek banks and the stock market were closed in an effort to keep people from taking out all their savings. Now they face a Yes or No vote on whether to accept the creditors’ new terms.

Tsipras made it abundantly clear that if the people voted in favour of the creditors’ new demands he would resign.

Stock markets around the world dropped dramatically when Tsipras announced his sudden move for a referendum. If the Greeks vote No, the country will most likely have to leave the eurozone.

And this would certainly mean a financial freak-out in Greece and even more damage to the global markets…