(MONEY.CNN) — In a dramatic but widely expected step, Greece formally defaulted on a $1.7 billion payment to the International Monetary Fund early Wednesday in Athens.
Greece became the first developed country to default to the IMF, an organization of 188 nations that tries to keep the world economy stable.
Greece will now be cut off from access to IMF resources until the payment is made.
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The move came hours after the country made a desperate attempt Tuesday to halt its plunge into economic chaos by requesting a new European bailout.