“If Greece was to be the first country to default, eyes would turn to other countries such as Ireland, Portugal, Spain, Italy, maybe Belgium but also France, given its deficit and debt levels. We don’t know where the contagion would stop.”-Didier Reynders, Belgian Finance Minister

After the European Union announced they would hold back the second bailout loan for Greece, because they want Greece to make more spending cuts, Greece said pay up or we will default on the first loan.

Greece is supposed to make their first payment, on the first bailout, in July.  Greek officials say they need the second bailout before then, or they won’t be able to make the first payment.  Greek Prime Minister George Papandreou, also warned of a “violent bankruptcy”.

The Belgian Finance Minister, Didier Reynders says there is evidence that the Greeks presented false economic statements prior to getting the first bailout loan.  This is one of many reasons the EU is now holding back on the second loan.