Cyprus President Appoints Cabinet

Posted August 5th, 2011 at 4:30 am (UTC-5)
Leave a comment

Cyprus President Demetris Christofias has appointed a new cabinet as his country engages in a fight to ward off bankruptcy.

He named Kikis Kazamias as finance minister amid growing speculation that Cyprus may be forced to seek a bailout.

Last week, the Moody's credit rating agency downgraded Cypriot government bonds two levels and said the outlook for the country is negative.

Moody cited what it calls the fiscal and economic conditions caused by a damaged power plant along with Cyprus' fractious political climate.

A huge munitions explosion at a naval base last month killed 13 people and severely damaged a major power plant, causing electrical shortages to about half the country. Experts say it will take at least a year to fix the power plant at a cost of more than $1 billion.

The munitions were seized from an Iranian ship headed to Syria. Cyprus media say authorities knew the munitions were not being stored safely, but failed to take precautions.