The ripples from Greece’s decision to shut down its banks amid its debt crisis have been felt in stock markets across the globe.

Greece is set to default on a €1.5 billion payment to the International Monetary Fund due today and will instead head to a referendum on whether to accept proposed strict austerity measures.

Should the country vote against the cuts in Sunday’s poll, as recommended by Prime Minister Alexis Tsipras’ leftist government, Greece faces being kicked out of the eurozone.

European and world leaders have pleaded with Greek authorities and residents to accept the measures in return for more bailout help.

Greek ATMs have run dry of cash as residents fear being kicked out of the Euro zone. (Supplied)

Fellow European markets plummeted as the ongoing crisis continued, with Italy, Spain and Portugal subjected to falls of up to five percent.

Economic powerhouse Germany suffered a drop of 3.5 percent.

Meanwhile, the Dow Jones plummeted a worrying 350 points on the day's trading.

It followed the Australian share market’s dive yesterday as the All Ordinaries closed 119 points down.

Foreign banks are among Greece’s long list of creditors.

Greek Prime Minister Alexis Tsipras, left, is greeted by European Commission President Jean-Claude Juncker. (AAP) (AAP)

The country’s banks are closed until Monday and strict capital controls are in place as residents scramble to withdraw cash.

Tourists are now advised to carry enough cash with them to last the duration of their journey and to ensure they have a departure airfare locked in.

Mr Tsipras said the decision to call a public vote would make the country better equipped to negotiate with the IMF and European Union.

“Our aim is for the referendum to be followed by negotiations for which we will be better armed," he said on Greek television.