The next act: What happens now in Greece’s drama

Greece has entered the twilight zone.

Out of money, cut off by its creditors, its banks shut, the struggling country will vote Sunday on whether to accept painful cutbacks in return for desperately needed financing.

Between now and then Greece remains suspended between collapse and an uncertain rescue, between membership in the 19-member euro club and the possibility of a humiliating exit.

What is the next deadline for Greece?

On Tuesday, the main part of Greece’s bailout deal expires. With no agreement to release the last $8.1 billion from that deal, Greece is on its own. An EU official said that after the deal expires, it would take weeks for creditors – other eurozone states and the International Monetary Fund – to put a new agreement on track.

Tuesday is also the day Greece has to pay a debt of about $1.7 billion to the IMF. If Greece doesn’t pay, it will take a while for the IMF to actually declare Greece in default. Credit ratings agencies say arrears to the IMF will not immediately trigger a default crediting rating for Greece.

Is a deal to save Greece still possible?

Technically, yes. Pierre Moscovici, the EU’s top economic official, said Monday that a deal was “a few centimeters” away. EU officials and creditors indicate their last offer is still on the table. Greek Prime Minister Alexis Tsipras has vowed not to accept it.

Will a Greek exit from the euro hurt my investments, as the Lehman Brothers collapse did in 2008?

Stocks were down globally on Monday, though there was no outright panic. U.S. Treasury Secretary Jacob Lew says no one really knows what the fallout would be from a Greek exit. Which is why he thinks it should be avoided.

Demetrios Efstathiou, economist with ICBC Standard Bank, says it would not be comparable to 2008.

This story was originally published June 30, 2015 at 12:18 AM with the headline "The next act: What happens now in Greece’s drama."