Athens - Striking Greek workers brought the Athens metro to
a standstill on Tuesday and kept ferries docked to protest against austerity as
the country's lenders visited Athens to try to avert a disorderly debt default.
European Union, International Monetary Fund (IMF) and European Central Bank (ECB) officials start combing through Athens'
books on Tuesday as part of efforts to put together a €130bn rescue package Greece needs to stay afloat when a major bond redemption comes due in late
March.
Greeks have been hit hard by tax hikes and wage cuts meant
to put the Mediterranean nation's finances back on track with a first bailout
agreed in 2010. Greece has entered its fifth consecutive year of
austerity-fuelled recession, with unemployment reaching a record high of 17.7%.
No ferries left from Athens' main ports on Tuesday, buses
will only work part of the day, bank employees are also expected to walk off
the job and labour unions will stage rallies to coincide with the start of the
EU/IMF visit.
"We demand that austerity policies are abandoned and
that the legislation that crushes our labour and insurance rights and turns
workers into slaves is abolished," the EKA labour union, which represents
workers in Athens, said in a statement.
The EU/IMF inspection visit is closely linked with Athens'
efforts to agree with banks on a deal to slash its debt of over €350bn by
€100bn.
Without the so-called PSI deal, which would see
creditors voluntarily giving up a lot of their promised returns, the EU and IMF
have warned they will consider that Athens' debt is not on a sustainable track
and will not release further aid.
The EU/IMF bailout plan would include money to recapitalise
Greek banks, which hold a big chunk of their country's debt.
One diplomat said: "If the PSI is successful you will
need transfusion for the Greek banks, and for that you need money from the
bailout plan."
Athens is running out of time and needs an agreement with
banks within days to avoid going bankrupt when €14.5bn of bond redemptions fall
due on March 20.
But talks broke down on Friday over the interest rate on new bonds Greece will offer and a plan to enforce investor losses. Negotiations were suspended until Wednesday, and Athens sent senior officials to Washington to consult with the IMF.