crisis in Greece and the prospect of a Greek exit from the eurozone has been simmering in the background.

But now it's looking serious and a showdown between Greece and the International Monetary Fund appears to be entering its final, dangerous phase.

Financial markets, which so far have been numb given the duelling rhetoric, are now bracing for the fallout if Greece is pushed from the eurozone or decides to walk away.

Just last week, Greece made a $US485 million repayment to the IMF on its massive debt of $US260 billion to ease concerns about debt default.

In return, Greece asked for more emergency cash to keep the government running so it can maintain social services could pay public sector workers.

But the IMF and eurozone leaders, led by Germany, said "no" and demanded that the Greek government deliver on promised economic reforms within six days.



[link to www.abc.net.au]