Venizelos named Greece's finance minister

ATHENS, Greece, June 17 (UPI) -- Greek Prime Minister George Papandreou appointed Evangelos Venizelos as finance minister Friday, with the country hovering near economic disaster.

Papandreou named Venizelos to succeed George Papaconstantinou as part of a Cabinet shuffle, The Guardian reported. Venizelos, who ran against Papandreou and lost in 2007's leadership elections, had been Greece's defense minister.

Papaconstantinou had been expected to vacate the financial post as the Greek economy flirts with a potentially devastating default. He was named environment minister

The change in finance ministers is Papandreou's latest attempt to try to push through austerity measures he said are vital to prevent Greece from defaulting on its debts but have angered Greek citizens, the British newspaper said.

Because Greek bond yields are at record levels, the country needs a new bailout package since it seems unlikely it could borrow from the financial markets in 2012 as intended in its first rescue plan approved last year, The Guardian said. The yield on a two-year Greek bond was 30.4 percent Friday.

Greece is expected to soon receive the next installment of its original bailout package, worth about $17 billion, but Greek officials said the country still must enact the unpopular cutbacks.