Strikes hit Athens as debt inspectors return
ATHENS, Greece — STRIKES and demonstrations over austerity measures hit the Greek capital of Athens yesterday, as international debt inspectors returned to resume their scrutiny of the country’s reforms.
The officials from the European Union and International Monetary Fund, which are lending money to Greece to keep it from bankruptcy, are expected to press the government for faster cost-cutting reforms.
Greece’s continued access to bailout loans depends not only on delivery on its austerity promises but also on negotiations with private creditors on a bond swap deal aiming to cut its debt by ¤100 billion ($10.9 trillion). It needs to get an agreement soon if it is to secure more rescue loans, with a bond repayment of ¤14.5 billion due in late March.
Some 10,000 protesters took part in rallies in central Athens over potential pay cuts in the recession-battered private sector. Anti-austerity strikes in the capital disrupted public transport and other services. Journalist unions also launched a 48-hour strike.
Under government pressure, unions and employers are due to launch talks today to explore ways of slashing labour costs. Lower-level members of the debt inspection team started the talks in Athens yesterday, with the mission chiefs due Friday.
Meanwhile, Greece saw its borrowing rates ease marginally in a bill auction yesterday.
The public debt agency said it raised ¤1.625 billion in a sale of 13-week treasury bills, an interest rate of 4.64 per cent, compared with 4.68 per cent in the last such auction in December.
Demand for the bills was 2.9 times the amount on offer, roughly the same as last month.