The odds of a Greek default climbed to 98% on Monday, fueled by speculation that Germany is strongly considering not providing Greece with further bailout funds.

According to Bloomberg, which cited data provider CMA, 'it now costs a record $5.8 million upfront and $100,000 annually to insure $10 million of Greek debt for five years using credit-default swaps, up from $5.5 million in advance Sept. 9.' The default probability assumes a recovery rate of 40%, which means investors would receive 40% of the face value of their Greek bonds.

In a speech this past weekend, Greek Prime George Papandreou failed to reassure the international community that Greece can survive the European sovereign debt crisis. Papandndreou's efforts were undermined by a report on Greece's budget deficit that revealed it widened 22% in the first eight months of 2011.