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Greek finance chief replaced after new bailout

George Papandreou, the Greek president, has replaced his finance minister after agreeing a new bailout deal with the country’s partners.

George Papaconstantinou will now be succeeded by Evangelos Venizelos, the former defence minister, as the IMF agrees to pay out the fifth tranche in the £95 billion bailout package.

Papandreou’s reshuffle comes in a bid to appease citizens after thousands of protestors demonstrated in Athens over the proposed £24.6 billion in cuts, set to take effect from 2012.

There are fears however that this has simply delayed the prospect of a Greek default as the eurozone faces potential spill-over effects.

Spain in particular saw disappointing results in a government borrowing auction yesterday.

The auction raised €1.5 billion (£1.3 billion) from bonds maturing in 15 years, although the aims was to raise between €1.75 billion and €2 billion.

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