7 Aug 2011

New cabinet appointed in Cyprus

6:10 am on 7 August 2011

President Demetris Christofias of Cyprus has appointed a new cabinet.

The previous cabinet resigned after a explosion destroyed the island's main power plant on 11 July, causing an energy crisis.

New finance minister Kikis Kazamias said Cyprus should be able to avoid becoming the fourth eurozone economy to seek a bailout.

''We have every reason to be optimistic from the moment everyone assumes their share of responsibility,'' Mr Kazamias, an economist, added.

Fitch's, Standard & Poor's and Moody's have all downgraded the island's credit rating this year.

Opposition parties have accused the government of backtracking on planned financial reforms and austerity measures.