LEAD: Greece's interim government expected to win confidence vote

Nov 16, 2011, 11:28 GMT

Athens - Lucas Papademos was Wednesday aiming to gain a comfortable majority in a parliamentary vote of confidence, his first major test since his appointment as Greece's new prime minister.

Greek lawmakers were due to cast their ballots in a roll-call vote after markets close, giving the former vice president of the European Central Bank a three-month mandate to fulfill the debt-ridden nation's obligations under a bailout programme financed by the European Union and International Monetary Fund (IMF).

The government was widely expected to win the confidence vote since it has secured the support of parliament's two largest parties, as well as some members of the smaller right-wing LAOS party.

Finance Minister Evangelos Venizelos said talks were underway to secure cross-party backing for the 130-billion-euro (175.6-billion-dollar) bailout package.

The debt deal includes provisions for private bondholders to take a 50-per-cent cut in their Greek debt holdings.

Speaking in a parliamentary debate ahead of the confidence vote, former prime minister George Papandreou said the new government would 'waging a war against uncontrolled markets, tax evaders and vested interests.'

Meanwhile, tension could flare at an annual rally on Thursday to commemorate the 1973 uprising that led to the overthrow of the 1967-74 military dictatorship.

More than 7,000 police officers have been deployed in Athens, as the authorities fear the march could turn violent in response to months of austerity measures.

Greece received an initial 110-billion-euro bailout in May 2010 in exchange for pushing through tax hikes and spending cuts to salaries and pensions.

Without the next tranche of 8 billion euros in emergency funding, Athens would default by mid-December, experts say.

In a new twist, while the conservative New Democracy was expected to back Papademos, party leader Antonis Samaras said he would vote 'no' in Wednesday's confidence vote because of his opposition to European Commission demands for a written pledge on meeting the terms of Greece's bailout.