Greece has voted "Oxi" or "no" in a referendum over whether to accept the bailout conditions offered to them by the European Union and the International Monetary Fund.

But why was there a referendum? And what impact could a no vote have on both Greece and Europe? Watch this handy IBTimes UK explainer video to find out.

Why was there a referendum?

Greece's Prime Minister Alexis Tsipras stunned Europe's leaders when he called a referendum during negotiations with the country's creditors. His reason: he claimed his Syriza government could not accept any further cuts without a mandate from the Greek people.

The referendum was billed as a choice for Greece between accepting austerity or leaving the eurozone.

What was the result?

A resounding rejection of the bailout terms, as 61.3% of people voted no, while 39.7% voted yes.

Greek referendum 5 July
Anti-austerity 'No' voters celebrated the result in AthensReuters/Marko Djurica

What happens now?

This is tough to predict. The result has sent shockwaves through the global financial system and could trigger a banking collapse in Greece, which have been closed with capital controls imposed.

Experts have said the result will almost certainly spell a Greek exit, a "Grexit", from the 19-bloc eurozone.

Whether the rest of Europe wants this remains to be seen. Tsipras claims the result strengthens his hand at the negotiation table and EU leaders could now be forced to find a new way to salvage the country's economy.

The people of Greece have voted, but for now, we do not know what they have ultimately voted for.