Two months after forcing through the biggest-ever sovereign bondrestructuring, Greece once again faces the prospect of becoming thefirst developed nation to default on its debt.

The government taking office after this weekend's election has30 days to decide whether to make today's interest payment on 20billion yen ($250 million) of 4.5 percent notes maturing in 2016,or default. Then, by May 15, officials must decide if they're goingto repay the 436 million euros ($555 million) due on afloating-rate note issued a decade ago.

These are among about 7 billion euros of bonds whose holderstook advantage of being governed by foreign rather than Greek lawto sidestep losses suffered under the private-sector involvementrescheduling, or PSI. Paying the holdouts in full would arouse theire of Greek taxpayers, as well as investors who cooperated withPSI. A failure to pay would signal Europe's debt crisis isworsening.