Greece stocks up just in case

A demonstrator at a rally in Athens. Greeks are being asked to accept more austerity in return for bailout loans. Photo / AP

Measures in place, ‘war room’ springs into action as siege mentality sets in.

Greece has stockpiled enough reserves of fuel and pharmaceutical supplies to withstand a long siege, and has set aside emergency funding to cover all the country's vitally needed food imports.

Yanis Varoufakis, the Greek Finance Minister, said the left-wing Syriza Government was still working on the assumption Europe's creditor powers would return to the negotiating table if the Greek people rejected their demands in a referendum today but it stands ready to fight unless it secures major debt relief.

"Luckily we have six months' stocks of oil and four months' stocks of pharmaceuticals," he told the Daily Telegraph.

Mr Varoufakis said a special five-man committee from the Greek Treasury, the Bank of Greece, the trade unions, and the private banks was working in a "war room" near his office allocating precious reserves for top priorities. Food had been exempted from a de facto import freeze since capital controls were introduced last weekend. Grains, meats, dairy products, and other foodstuffs should be able to enter the country freely, averting a potential disaster as the tourist season kicks off.

The cash reserves of the banks are dwindling fast as citizens pull the maximum 60 ($100) a day allowed under the emergency directive — already 50 at many banks. Despite assurances, the crisis is likely to escalate fast if there is no resolution early next week. Businesses in Thessaloniki and other parts of the country are already creating parallel private currencies to keep trade alive and alleviate shortage of liquidity.

A man begs in central Athens. Photo / AP

Vasilis Papadopoulos, owner of the Maxi paper mill in Katerini, said the situation was becoming desperate for his industry. "I have enough raw materials to last until July 14. If I don't get any more pulp, I will have to close the factory. It is a simple as that. I have 183 employees and I will have to start laying them off," he said.

His firm had reached an accord with regional supermarkets to accept coupons or private scrip money in lieu of payment. His workers would then be able to use that as a parallel currency to buy goods.

In the meantime, people are trying to offload their bank holdings. (Electronic bank transfers within the country are still allowed). "Our clients are trying to pay us as much possible, and transfer their problem to us. We, in turn, are paying everything in advance: taxes, gas, anything we can," he said.

"It is like musical chairs because nobody wants to be the last one left standing with money in their account when the music stops."

The eurozone has 400b of exposure in one form or another and the Greek crisis is likely to come to a head one way or another after the referendum.

Alexis Tsipras, the Greek Premier, called on the nation to reject the creditors' demands in a televised address, insisting a "no" vote did not mean ejection from the euro.