REPORT: Varoufakis says Greece definitely won't pay the IMF today

It looks like Greece has confirmed what we've been expecting - it's going to default.

Reuters just tweeted that Greece's Finance Minister Yanis Varoufakis has confirmed that Greece won't pay the International Monetary Fund the €1.6 billion (£1.14 billion, $1.79 billion) it's due today.

Government sources signalled to the Wall Street Journal yesterday that this would be the case but up until now we've only heard it from anonymous sources. Varoufakis is second only to Prime Minister Alexis Tsipras in the Greek hierarchy.

Talks between Greece and its creditors broke down over the weekend, and Greek Prime Minister Alexis Tsipras called a referendum on the issue scheduled for next Sunday.

In response, Greek banks have been closed, and capital controls have been put in place.

Greece missing an IMF payment means the country will not be able to get any more funding from the IMF, which was set to release €7.2 billion (£5.12 billion, $8.05 billion) to Greece with a new agreement.

The knock-on effect of that is Greece will also be unable to pay back the European Central Bank, which it owes €3.5 billion (£2.49 billion, $3.91 billion) on July 20.

We'll update this story as we hear more