Greece's Parliament approved an austerity bill demanded by European bailout creditors, paving the way for Greece to open negotiations for a third bailout in five years. The “yes” vote early on Thursday came despite a significant level of dissent from the governing leftist Syriza party, and sizeable demonstrations on the streets of Athens.

The government is seeking urgent relief from European lenders later in the day. Finance ministers from countries using the euro as currency were planning a conference call to consider rescue financing for Greece, while the European Central Bank (ECB) will mull a request from Athens to increase emergency assistance to troubled Greek banks that have been closed since June 29.

The bill to impose sweeping tax hikes and spending cuts was approved with the support of three pro-European opposition parties. The package was approved with 229 votes in the 300-seat chamber. There were 64 votes against it and six abstentions.

Several prominent members of Prime Minister Alexis Tsipras' ruling party voted against his recommendation, including Energy Minister Panagiotis Lafazanis and former finance minister Yanis Varoufakis.

Eurozone rescue lenders demanded the fresh round of cuts in a deal reached earlier this week to place Greece in a new bailout program.

Dissenters argued that Greeks could not face any more cuts after six years of recession that saw a sharp rise in poverty and unemployment.

Government spokesman Gabriel Sakellaridis acknowledged the vote laid bare a split in Syriza, but he said the government's priority was to secure the bailout, suggesting that there would be no immediate move towards new elections.

With Greek parliamentary approval secured, the way has been cleared for other national parliaments to approve the start of bailout talks and for the release of funding to allow Greek banks to re-open, more than two weeks after capital controls were imposed to prevent them from collapsing.

With the state practically out of cash, and banks dangerously low on liquidity, Greece desperately needs funds. It faces a Monday deadline to repay 4.2 billion euros ($4.6 billion) to the ECB, and is also in arrears on 2 billion euros to the International Monetary Fund.

Negotiations on the new bailout will take an estimated four weeks, leaving European finance ministers scrambling to find ways to get Athens some money sooner.

Credit ratings agency Moody's said Thursday morning that the vote “averts an immediate disorderly default and potential exit from the euro” but warned that “risks remain elevated” given substantial skepticism within the country on the bailout conditions.

Moody's noted, however, that “judging by recent events and the deep economic problems and social divisions within society, it is highly uncertain whether the Greek authorities have the capacity to achieve agreed objectives and to abide by its creditor's conditions.”

European stock markets reacted favorably to the vote. The Stoxx 50 index of top European companies was up 1.4 percent in late morning trading. Germany's DAX and France's CAC-40 were up by the same rate. Greece's stock market has been closed since the banks were closed.

Ahead of the critical vote, Tsipras said he had no choice but to accept tough terms with creditors.

“We had a very specific choice: A deal we largely disagreed with, or a chaotic default,” he told parliament.

As he spoke angry crowds gathered in Athens.

Police said about 50 protesters were detained during hour-long clashes outside Parliament.

The disturbances involved about 200 youths who hurled firebombs and rocks at riot police, and smashed office windows and set fire to trash bins. Many of the mask-wearing protesters carried wooden bats and chunks of smashed paving stones.

The clashes were the worst since Tsipras' left-wing government was formed six months ago.

The clashes died down as the debate got underway in parliament on a new austerity bill.

Earlier, more than 10,000 people, supporters of left-wing groups and a Communist-backed trade union, staged a peaceful rally in central Athens.

Al Jazeera and wire services