The EU planned to give its go-ahead to the aid, which will come in return for tough austerity measures in Greece, at a meeting of euro zone finance ministers in Brussels on May 2.

Greece and its international backers hope the deal, which could reach up to US$159.8 billion, will help stem a crisis that has hit the euro and shaken markets worldwide.

Analysts say whatever ultimately happens in the Greek debt crisis, investors are having to come to grips with an unstable euro zone.

A bailout will come in return for draconian budget cuts in Greece, where thousands marched on May Day shouting slogans against austerity measures they say only hurt the poor and will drag the country further into recession.

"No to the IMF's junta!," protesters chanted, referring to the military dictatorship which ruled Greece from 1967 to 1974. "Hands off our rights! IMF and EU Commission out!," the protesters shouted as they marched to parliament.

More than half of Greeks say they will take to the streets if the government agrees to new austerity measures, according to an ALCO poll released on Friday by the newspaper Proto Thema.

The IMF believed it would take 10 years for Greece to overcome its financial problems, according to a report to appear in Monday's Der Spiegel magazine.