Greek cabinet approves pension reform: government source

ATHENS: The Greek cabinet approved on Friday a pension reform to overhaul the country's ailing social security system, which is strongly opposed by trades unions, a government source told AFP.

"We want a viable pensions system, which was not the case before," Prime Minister George Papandreou earlier told ministers.

Greek Labour Minister Andreas Loverdos is expected to present the details of the reform, which raises the full retirement age to 65 and cuts pensions, at a press conference later in the day.

Greece is under pressure from the European Union and the International Monetary Fund to streamline its finances after receiving an unprecedented 110-billion-euro (135-billion-dollar) loan that saved it from default.

Previous austerity measures including pay cuts for civil servants have raised a storm of protest from unions who have held a series of general strikes and protests.

Another general strike, the fifth since February, will be held on June 29.