Italy earthquake rescuers hit by aftershocks

* Hopes fade for finding quake survivors

* 17,000 homeless sleeping in tent camps

* Damage estimated at 2-3 billion euros

(Releads with aftershocks)

By Silvia Aloisi and Antonella Cinelli

L'AQUILA, Italy, April 9 (Reuters) - A series of aftershocks disrupted rescuers in central Italy early on Thursday as they picked through rubble for a third night in their search for survivors of Monday's earthquake that killed 272 people.

One tremor measuring 5.2 on the Richter scale hit at 2:53 a.m. (0053 GMT) according to the U.S. Geological Survey, shaking the medieval mountain city of L'Aquila and nearby villages. It caused damage to buildings but there were no immediate reports of any more victims although it was felt in Rome, some 100 km (60 miles) to the west.

The aftershocks terrified many of the survivors -- 17,000 of whom stayed in tent villages for another cold night after being made homeless. Rescuers acknowledge hope of finding anyone alive under the devastated city are fading with every hour.

"This city has been annihilated and I don't think we'll ever go back to that house, our house. It's full of ghosts and fear," said Claudio Gaudieri, 53, sitting in a tent camp in L'Aquila.

His wife sobbed on the phone, and Guadieri held her hand.

"We lost everything," he said.

The death toll climbed to 272 after rescuers pulled more bodies from the collapsed buildings. Relatives began holding private funerals for the dead.

A mass state funeral and a national day of mourning are expected to be held on Friday.

At least 16 children, including a five-month-old baby, were killed by Monday's 5.8 to 6.3 magnitude earthquake.

Rescue workers haven't found any survivors in at least 24 hours. The last person rescued, a 20-year-old woman, was pulled out the rubble late on Tuesday.

"We're human beings, like the people who are still under there. So we're doing everything possible," said one rescuer, walking among the rubble in the historic centre.

"But it's clear that after 72 hours, hope is fading."

The interior minister said searches would continue at least until Easter.

"As long as we know that there are people under the rubble, we will keep searching even if we're sure they're dead. Families need to know what happened to their loved ones," a fireman said.

Prime Minister Silvio Berlusconi, who has declared an emergency and sent in thousands of troops, visited L'Aquila on Wednesday for a third day. Italian President Giorgio Napolitano was due on Thursday.

One estimate for insurers put the damage to Italy's economy at 2 billion to 3 billion euros ($1.5 billion to $2.2 billion).

Berlusconi said in total 28,000 people had lost their homes in the earthquake, with 17,000 now living in tents and the rest in free hotel rooms or staying with family.

Officials say the quake will have a huge impact in a region which mostly lives off tourism, farming and family businesses.

Survivors face a grim Easter. With many local churches badly damaged, people prepared to celebrate in makeshift chapels.

The government and hotel owners offered free shelter for the homeless in hotels on the Adriatic coast. (Writing by Phil Stewart; additional reporting by Reuters Rome bureau; editing by Matthew Jones)