Everything you’ve wanted to know about the Greek crisis but were afraid to ask

The forthcoming referendum will stir anxiety among UAE expatriates with family ties in the stricken country, a planned holiday in the Greek islands or fears of further damage to their investment portfolios.

A Greek national flag flutters atop a building as dark clouds fill the sky in Athens. Alkis Konstantinidis / Reuters
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These are anxious times for the Greeks, who vote on Sunday whether to accept tough new austerity measures in return for more bailout funds.

The referendum will also stir anxiety among UAE expatriates with family ties in the stricken country, a planned holiday in the Greek islands or fears of further damage to their investment portfolios.

What if I am an investor in a fund with exposure to Greece?

Few expatriate investors will have direct exposure to Greek stocks, as the country’s economy makes up just 1.8 per cent of European GDP. Chris Williams, chief executive of the adviser Wealth Horizon in London, says most fund managers exited Greek stocks long ago. “Only a small minority of investors hold bonds or shares in the country,” he says.

James Thomas, a managing partner at Acuma Independent Financial Advice Expat Investments, says: “Long-term investors can afford to ignore short-term market turbulence.”

What if I like to buy stocks and bonds on the cheap?

If you are feeling brave, a 10 per cent drop in European stock markets could make now a good time to go shopping for cheap shares.

Nigel Green, the founder of the adviser Devere Group, says market volatility is set to continue no matter what happens. “There might be a temporary reprieve in the case of a yes vote, but the saga has fundamentally rocked confidence in Europe.”

Think twice before investing in bonds right now. Prices could fall sharply if the US starts raising interest rates this year.

What if I own or want to buy property in Greece?

Clare Nessling, director at the overseas mortgage specialist Conti, advises property investors to avoid Greece right now. “It is just too risky.” If Greece adopts the drachma, the subsequent devaluation might be a great time to pick up cheap property. It would be a disaster for existing owners, however, as property values would plunge but they would still have to service their mortgages.

What if I’m going to Greece?

Your tour operator or travel insurer is unlikely to give you a refund if you cancel, so you have to bear the cost yourself, Bob Atkinson at the holiday website Travelsupermarket.com says.

Check if your travel insurance will reimburse you if strikes or protests disrupt your trip or make you miss your flight home, he adds

Greece is a welcoming destination for tourists, Mr Atkinson says. “The sun is shining, resorts are open as normal and you can get big discounts on brochure prices.” Tourists are exempt from the new rule limiting the locals to withdrawing a maximum €60 (Dh244) a day from ATMs.

But you should still take enough cash to cover your entire trip in case the crisis intensifies. Mr Atkinson adds: “Make sure your travel insurance will cover the extra cash in case of loss or theft.”

What if I am going to Cyprus – is it also affected?

Cyprus suffered its own banking crisis a couple of years ago, but is untouched by the current crisis. “Despite its close links to Greece, Cyprus is an independent country,” Mr Atkinson says.

What if I send remittances to Greece?

Think twice before sending any more remittances. Marianne Gilmore, a commercial director at the foreign exchange specialist Moneycorp, says money held in Greece could be threatened if the country is forced out of the euro zone. “This would throw the entire financial system into disarray and spark another run on the banks.”

EU deposit guarantee programmes safeguard the first €100,000 of savings, but were not designed to cope with a full-blown banking collapse.

“And the banks may not reopen as planned on Tuesday if Greece votes no,” says Ms Gilmore.

What if I’m a coin collector – are there any Greek-image euros that might become valuable?

A Greek exit would also boost demand for the last euro coins issued by the Bank of Greece, such as the 2014 proof sets.

Elizabeth Beckford at the coin specialist Chard in the UK says: “The 2011 €2 Europa abducted by Zeus and the 2007 €2 Europa abducted by Zeus might also become collectable.”

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