Greece Financial Trouble

Jim We're in Greece at the moment and, from a tourist point of view, the crisis isn't all that evident. The main effect is a number of running strikes - Athens public transport is out at the moment, for example - and it is worth planning to be flexible about travel arrangements. This site isn't the place for political punditry but, for what it's worth, I'd be surprised if next year is as disrupted as this has been. There seems to be fairly universal agreement that Greece will default over the next few months. Again this will probably have a fairly small effect on tourists: we are certainly planning our Christmas visit here without worrying too much. (Things are obviously much more difficult for our Greek friends living here!) Alan

The general consensus amongst financial planners is that Greece will either have a structured default or go up in flames (no pun intended), probably within the next 12/18 months (although my tea leaves are somewhat unclear on that). The bond market already considers Greece in technical default. In either case hard currency (Euros or Dollars) will be in great demand and you'll probably get a lot of bang for your buck. Flip side the social chaos will be enormous and there probably will be great civil unrest (not directed at tourists but if you've ever been caught up in a riot it's something you'll really really want to avoid in the future). ON THE FLIP SIDE. Tourists will be very much welcome and if you avoid the area where demonstrations are going on (check with your hotel) you should be ok.

All that sounds good but how do you get Euros in a situation like that? I am planning on taking five students to Greece in April and we don't want to get caught without cash. Suggestions (other than not going)?

Why wouldn't you be able to get cash? Just go to the ATM like normal. The country might go into default on its loans but that has no relation to individuals obtaining cash. Transit strikes may remain a hassle but there will always be ways of getting around. Protests may continue but by avoiding certain parts of Athens you won't even know about it.

John: April is six months away so when you get closer to taking your students you'll be able to game the on site situation better. If you are not flying direct and have a transit airport in the EU you can get cash from the ATMs at the airport. Even if/when Greece defaults commerce will still be taking place even if you have to actually walk into a bank. West Germany faced this problem with the fall of East Germany and the subsequent reunification. Do take some real U.S. currency (and have your students take some as well). Consider these dollars sacred and for emergency use only. I do this as a matter of course and have never had to dip into my stash with the exception of being in Paris with my elderly mother on 9/11.

I was more concerned if the banks were to close. I have read that that is a real possibility if the country defaults and has to go off the euro. The banks will close and reopen after a few days of internal restructuring. Maybe we will just draw out a lot of money at the first ATM. I always pay cash as I go. In all countries except Greece, I usually get a discount.