Ukrainian President Viktor Yushchenko has appointed a young central bank specialist as new economy minister in a revamped government, a source in the presidential administration said on Tuesday, Reuters reported.

Arseniy Yatsenyuk, 31, a former first deputy chairman of the bank, is to replace Serhiy Teryokhin, who often quarrelled with the central bank.

Yatsenyuk will symbolise the new face of the government, overhauled after a damaging split within Yushchenko's eight-month-old administration.

His new team will be charged with reversing a slowdown in economic growth and bringing consistency to economic policy in the run-up to a parliamentary election next March.

Yulia Tymoshenko, sacked by Yushchenko in early September after months of infighting, won widespread admiration among voters for her fiery style, but contradictory decisions under her stewardship have scared off many investors.

New Prime Minister Yuri Yekhanurov, approved by parliament at the second attempt last week, has a style diametrically opposed to his flamboyant predecessor. Seen as a low-key technocrat, he has pledged to pack his team with experts rather than politicians.

Teryokhin, one of Tymoshenko's key allies in the outgoing government, often confronted the central bank, lobbying for stronger hryvnia currency and more a flexible exchange rate.

Yatsenyuk headed the bank for five months in 2004 when the chairman of the time, Serhiy Tyhypko, took leave to oversee the campaign of Yushchenko's rival in the presidential election. He is well placed to improve ties with the bank.

Pro-Western liberal Borys Tarasyuk was kept on as foreign minister. Yushchenko appointed parliamentary deputy Stanislav Stashevsky as first deputy prime minister and Anatoly Kinakh, first deputy premier in the outgoing government, was named secretary of the National Defence and Security Council.

The source in the administration said talks on other ministerial posts were proceeding but most of the cabinet line-up is expected to be named by the end of Tuesday.


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