LEAD: Greek riot police clash with anti-austerity protesters

Feb 7, 2012, 12:18 GMT

Athens - Greek riot police clashed with anti-austerity protesters on Tuesday as leaders of the governing coalition sought to reach a long-delayed agreement on painful cutbacks demanded by international creditors.

Police fired tear gas at hundreds of hooded protesters who tried to break a cordon outside parliament, while more than 10,000 demonstrators from Greece's two biggest labour unions marched nearby.

No injuries or arrests were immediately reported.

Leaders of the three coalition parties will meet with Prime Minister Lucas Papademos on a range of new income and job cuts demanded by the European Union, the International Monetary Fund (IMF) and the European Central Bank, known as the troika, in exchange for more rescue loans crucial to avoiding a default.

Labour unions are holding a 24-hour strike in protest at the planned cuts. Ferry and train services were halted, forcing the closure of schools and banks. Hospitals were operating on emergency staff as doctors walked off the job.

The government on Monday caved in to pressure by the troika and announced 15,000 public sector lay-offs in 2012. Other measures demanded by international creditors include reducing the minimum wage to help boost competitiveness.

The bailout also depends on separate talks with banks and other private bondholders on a 100-billion-euro Greek debt write-off.

The coalition government is racing to push through the painful reforms to secure a 130-billion-euro (170 billion dollar) bailout deal and avoid a March default on its bond repayments.