(VOVworld) - The euro zone's rescue fund, Greece's largest creditor, on Friday declared Athens in default on its euro zone loans after missing a payment to the IMF, and reserved the right to call in 130.9 billion euros in debt ahead of schedule.

Thousands of Greek people rallied to protest austerity measures in Athens on July 2nd (Photo: Xinhua/ VNA)

The decision came two days before Greeks were set to vote in a referendum on whether to accept bailout terms. The European Financial Stability Facility (EFSF) said Tuesday's failure to pay the International Monetary Fund "results in an event of default by Greece, according to EFSF financial agreements with Greece". The EFSF supports Eurozone members which face financial difficulties and is now managing Greek debts and government bonds worth 160 billion USD. EFSF chief executive Klaus Regling said the event of default is cause for deep concern. It breaks the commitment made by Greece to honor its financial obligations to all its creditors and it opens the door to severe consequences for the Greek economy and the Greek people.