Greece's mounting economic turmoil, spurred on by its immediate need for a crucial 12 billion ($NZ21.2 billion ) bailout package, has prompted ANZ New Zealand not to go ahead with a 1 billion ($NZ1.76 billion) euro-denominated bond issue.
While week-long widespread volatility in world stock markets has calmed and Greece's besieged Government yesterday survived a confidence vote, the ANZ has dropped the issue in the face of the Greek crisis, which is far from resolved.
An ANZ spokeswoman told the ODT yesterday the bank had completed its funding needs for the year and had chosen not to go ahead with the issue, given the market conditions.
To receive its next tranche of 12 billion from the International Monetary Fund and European Union, enabling it to meet debt repayment obligations, Greece must first approve austerity measures worth about 28 billion.
However, the likelihood of imposing further austerity measures has driven the population to widespread rioting, violent protests and general strikes.
The euro rose briefly in early Asian trade after the confidence vote, but it then relinquished gains on fears lawmakers may yet vote down the deeply unpopular austerity package next week.
Craigs Investment Partners broker Peter McIntyre said the ANZ did not want to be there while it was so unsettled.
"A contagion may appear [in other European countries] if the Greek issue is not resolved," Mr McIntyre said.
The perceived negative domino effect of a loan default by Greece on its European Union neighbours has raised the question of the overall stability and future of the euro currency.
However, Mr McIntyre said is was not likely to be the currency perspective driving the ANZ deferral, but the immediate market volatility.
United States stocks posted gains for the fourth consecutive day on Tuesday, on growing hopes that Greece would avoid a debt default, adding momentum to the market's recent rebound.
The Nasdaq had its biggest percentage gain since October, while the S&P 500 index marked its best day in two months, in what investors believe could be continued short-term buying from the recently deeply oversold levels, Reuters reported.
The vote of confidence in Greek Prime Minister George Papandreou's cabinet is seen as the first step in moving closer to a resolution of Greece's debt crisis, which could pave the way for more aid and remove the constant source of worry about global banks' exposure to the eurozone's debt problems.
