New Zealand's Ministry of Foreign Affairs and Trade is reviewing its travel advisory for Greece, as the crisis deepens over its financial stability following a breakdown in talks with lenders.
With Greece's bailout expiring on June 30 and a €1.6 billion payment to the International Monetary Fund falling also due, the country's leader has pleaded in vain by phone with European officials to extend the programme until a referendum on July 5 on its future terms.
Banks and ATMs throughout the country have been closed and there were long lines at supermarkets on Monday.
A spokesman for MFAT said today there were148 New Zealanders registered as being in Greece and the ministry was reviewing its official travel advisory. However, no New Zealanders have yet sought consular assistance.
On June 19, MFAT advised New Zealand travellers to "ensure they have multiple means of payment with them, including cash, debit cards, credit cards, and that they have enough money to cover emergencies and any unexpected travel expenses".
Comprehensive travel insurance policies for all travellers was also recommended.
Flight Centre said it has been contacted by New Zealand customers worried about access to cash while on holiday in Greece, as banks and ATMs in the country have been closed.
The travel agency is telling travellers to carry a mix of cash and a prepaid travel money card to Greece.
"We've had a number of customers concerned about the shutdown of the Greek banking system and what this will mean should they find themselves caught short of cash and with limited or no ATM access," said Scott McCullough, manager of Travel Money, a Flight Centre firm.
NZ not immune, PM warns
Prime Minister John Key says the financial crisis in Greece underlines his view that the biggest risk to New Zealand's economic growth came from overseas markets
Mr Key said today that the domestic stimulus remained strong.
"Christchurch rebuild, Auckland housing issues, just generally, tourism across the country has been very, very strong - so I've always thought the biggest risk is international and this is a factor," Mr Key said today.
"The only good news part of the story is that a fall out of Greece from Euro would have been much more significant a few years ago than it is today. But we are not immune from it, the Dow Jones industrial index was down nearly 2 percent over night ...the Kiwi (dollar) is continuing its slide."
Mr Key said it was possible the Greek developments could have "a little" impact on commodity prices, including dairy.
"Although the negative news in dairy is quite factored in. I mean, if you talk to Fonterra they'll probably tell you they see potentially a little bit more bad news for a few months, but overall they think they are getting near the [price] bottom."
Asked if he believed the Greek crisis was fuelled by egotism from the country's leaders, Mr Key said he did not, and the situation facing the Greeks was very challenging - with either path a painful one.
"Ultimately if they decide to pull out of the European Union then that will have a dramatic impact in terms of a new currency that would be constituted in Greece, obviously the drachma would be back at a fraction of what the Euro was, it's my guess.
"That's great for their exports and people who would want to come and have a holiday in Greece. But equally they would have all of their lending taps turned off and the question would be, could they fund themselves going forward?
"If they accept the package that's put together it's more years of austerity and fundamental change to the way Greece operates. So neither of these situations are easy."
- NZME and NZ Herald
