Stock markets in Britain, Europe and the US have fallen after Greece closed its banks and imposed capital controls.
London’s FTSE 100 index was down 1.47% and Germany’s Dax index fell more than 2%. In the US, the Dow Jones fell nearly 1% early in the session.
Bank stocks are among the hardest hit, with shares of Deutsche Bank and Commerzbank both losing more than 4%.
The Athens Stock Exchange and Greek banks will be closed all week.
On the money markets, the euro lost ground against other major global currencies.
The London FTSE 100 share index was down 98.47 points at 6,655.23 with other European markets seeing even bigger falls. Earlier in Asia, Japan’s Nikkei index fell nearly 3%.
On the currency markets, the euro saw volatile trading in Asia, falling by 2% at one point. However, it has since recovered some ground, with the euro down 0.15% against the dollar at $1.1149.
The euro has weakened against the pound, with one euro now worth £0.7089, while the pound buys €1.4108.
Oil prices are heading lower. Brent crude oil futures fell more than 1.5% to $62.10 a barrel.
Bond yields (an indication of borrowing costs) for Italy, Spain and Portugal – which are considered some of the weaker eurozone economies – rose sharply.
In contrast, German bond yields fell. German bonds are seen as safer investments in times of crisis.
Greece was due to make a €1.6bn payment to the IMF on Tuesday – the same day that its current bailout expires.
Last week, talks between Greece and the eurozone countries over bailout terms ended without an agreement, and Prime Minister Alexis Tsipras then called for a referendum on the issue to be held on 5 July.
At the weekend, the Greek government confirmed that banks would be closed all week, and imposed capital controls, limiting bank withdrawals to €60 (£42) a day.
There is zero chance of the European Central Bank turning Emergency Liquidity Assistance back on – life-saving lending to banks – unless Greeks give an affirmative vote to a bailout proposal from the rest of the eurozone and the IMF, which Juncker sees as a proxy for Greece’s monetary future.
As for Athens, most of the Syriza government detests the bailout offer – for the way it pushes up VAT and cuts pensions.
So we will have the bizarre spectacle of a Prime Minister, Alexis Tsipras, arguing both against the bailout and for remaining inside the eurozone – so goodness only knows how he will vote.
And Greek people will be torn between fear and loathing of bailout proposals that will damage the living standards of many of them, and fear and loathing of abandoning the euro and seeing their banks closed.