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Greek Referendum: Rival Rallies Due In Athens

Greek Referendum: Rival Rallies Due In Athens

Thousands of Greeks are set to attend rallies in Athens this evening, as the rival "yes" and "no" campaigns plead their cases ahead of Sunday's bailout referendum.

The public meetings will be staged just 800 metres apart in central Athens, raising fears of potential trouble.

Greek prime minister Alexis Tsipras was to speak at the "no" rally in the capital's main Syntagma Square outside Parliament.

He issued a rallying cry to his supporters ahead of the gathering, asking Greeks to stand firm against "blackmail and ultimatums".

Mr Tsipras also outlined his demands for a "30% haircut (reduction) off the Greek debt" and "a 20-year grace period" as part of any bailout deal.

Rival "yes" supporters are to meet at the nearby Panathenian Stadium.

The referendum will centre on whether Greeks are prepared to accept the latest offer from the country's international creditors - rejected by the government as against its anti-austerity mandate.

The latest polls suggest the two sides - the "yes" camp in favour of accepting the creditors' terms and the "no" camp opposed to more austerity - are neck and neck in the vote.

A Greek court ruled on Friday that the vote could go ahead as planned, rejecting an appeal by two citizens asking for the referendum to be ruled unconstitutional.

Leaders of eurozone nations have said a win for "no" would be a vote against Greece remaining in the eurozone while Mr Tsipras believes it would actually strengthen his negotiating hand.

Sky sources say a "yes" win would be expected to result in the resignation of the Syriza-led government and the formation of a national unity government.

It would be likely to make a quick rescue deal to prevent the prospect of a banking system collapse and exit from the single currency.

The figures at the heart of the country's financial crisis were earlier laid bare by the International Monetary Fund (IMF).

It said Greece needed €50bn over the next three years to stabilise its finances even under existing creditor plans.

Of that figure, €36bn must come from EU lenders, the IMF said.

The sense of crisis in Greece has intensified amid reports that bank cash machines are on course to run out of money over the weekend, following the decision by the European Central Bank not to increase the limit on its emergency funding support.

The head of the country's banking association said that Greek banks have a "liquidity cushion" of €1bn but funds beyond Monday depend on the ECB.

"Liquidity is assured until Monday, thereafter it will depend on the ECB decision," Louka Katseli said.

Businesses - especially retailers - have also reported a shortage of change, as capital controls in the country restrict people to three €20 euro notes a day at the ATMs.

There is evidence of growing anger and frustration on the streets.

Police clashed with far-left protesters in Athens on Thursday night.

Officers used tear gas and pepper spray to stop the anti-austerity demonstrators trying to storm EU offices in the capital.

The capital controls which limit cash withdrawals to €60 per-person-per-day could well be tightened - even before the referendum is staged.

Bank branches and the Athens stock exchange - shut all week - are expected to remain closed until Tuesday at the earliest.