Greek government reshuffle

The reshuffle on Friday came two days after a rebellion in Tsipras' left-wing Syriza party forced him to rely on opposition votes to pass a reform package in return for talks on a third international bailout for his debt-stricken country.

Tsipras replaced Energy Minister Panagiotis Lafazanis, one of the rebels, with former Labor Minister Panos Skourletis, whose position will be taken by George Katrougalos, formerly Administrative Reforms Minister.

Skourletis is a close ally of Tsipras.

The deputy minister of defense, who was close to Lafazanis, was also removed from the post, to be replaced by Christoforos Vernardakis, an academic.

The prime minister also named Trifon Alexiadis deputy finance minister, replacing Nadia Valavani, who stepped down ahead of the vote earlier this week.

The crucial portfolio of finance minister will be kept by Euclid Tsakalotos, who took over the position on July 6 after the former holder, Yanis Varoufakis, resigned.

The new members of the cabinet are scheduled to be sworn in on Saturday.

Difficult reforms

After months of laborious negotiations with international creditors, Greece this week accepted a raft of tough economic reforms including significant changes to pensions, increases in value added tax and tight restrictions on public spending in exchange for up to 86 billion euros ($93.3 billion) in international loans.

The vote revealed a rift in Tsipras' Syriza Party, which came to power in January on the back of pledges to put a stop to five years of austerity imposed from abroad.

Germany's lower house, the Bundestag, on Friday passed a motion in favor or renewing financial negotiations with Greece by a large majority, though the vote was preceded by tense debate.

Also on Friday, the European Union said it will make a bridging loan of 7.16 bilion euros to Greece by Monday to enable it to avoid immediate default.

tj/kms (Reuters, AP)