Greeks strike as EU and IMF start key visit

Senior European Union and International Monetary Fund inspectors met Finance Minister George Papaconstantinou at the start of a visit to Athens to press Greece to shore up its finances one year into the EU/IMF deal.

Riot police clashed with the youths in black hoods just metres (yards) from where the meetings were being held to decide whether Greece will get a fifth tranche of aid from the 110 billion euro bailout that saved it from bankruptcy last year.

Police said 17 demonstrators and two policemen were hurt in the clashes, including one protester with serious head injuries, while 24 people were detained. Without the next 12 billion euro tranche, the key to paying 13.7 billion euros of immediate funding needs, Greece would effectively default.

Police said about 20,000 protesters marched to parliament to mark a nationwide 24-hour strike against wage cuts and tax hikes which unions say are strangling the economy.

Athens was nearly deserted with many shops and public services closed and posters reading: "We can't take it any more. The rich and the tax evaders should pay."

The IMF and EU officials will also consider giving Athens improved loan terms or more aid to avoid restructuring its huge debt. Investors say a restructuring, imposing losses on private bondholders, is inevitable without more funds.

The nationwide strike grounded flights and halted shipping. Hospitals were operating on skeleton staff, schools were closed and city transport was disrupted. Only emergency flights were allowed between 0900 and 1300 GMT.

Greek newspapers reported that Greece was nearing agreement for supplementary EU/IMF loans of 50-60 billion euros to cover its funding gap in 2012 and 2013 in exchange for bold privatizations.