Greece Agrees to €24 Billion Austerity Program: Report

Greece will overhaul the state pension system as part of a package of austerity measures to clinch a three-year, multi-billion-euro aid deal, a Greek minister told the FT on Thursday.

Andreas Loverdos, social affairs minister told the Financial Times the measures included dropping the seasonal bonus for pensioners in a bid to slash Greece's bloated budget deficit.

"The timetable for the pension measures is still being debated, but there isn't much room for maneuver—this is about saving the country from collapse," Loverdos told the FT.

Union officials told Reuters on Thursday the International Monetary Fund had asked Athens to raise sales taxes, scrap bonuses amounting to two extra months of pay in the public sector, and accept a three-year pay freeze.

Other measures in the 24 billion euro package include raising the retirement age from an average of 53 to 67, the FT said in its Friday edition.

Sources familiar with the aid talks said officials were expected to announce details of a three-year package by Monday, ending months of uncertainty.