Interim Greek PM named

SENIOR banker Lucas Papademos has been named prime minister of the new Greek interim government, charged with keeping the debt-ridden country out of bankruptcy and in the eurozone.

After four days of talks, the 64-year-old former vice-president of the ECB was chosen to lead a coalition backed by both the governing Socialists and opposition conservatives that will operate until elections in February.

He replaces Socialist prime minister George Papandreou midway through his four-year term.

A statement from the president’s office said Mr Papademos would form an interim government that would secure and implement the decisions of a €130 billion European debt deal agreed during a summit in Brussels on October 27.

The new cabinet will be sworn in on Friday.

The latest Greek crisis erupted when Mr Papandreou said he would put the European debt deal, which involves private bondholders canceling 50% of their Greek debt holdings, to a referendum.

The announcement horrified European leaders, sparked a rebellion in his own party and caused uproar in financial markets.

Mr Papandreou withdrew the referendum plan and agreed to step aside for a unity government.

Mr Papademos has been operating as an adviser to the prime minister.

Shares on the Athens Stock Exchange were up 2.1% at 783.28 on the prospect of a power deal.