Updated

Prime Minister Alexis Tsipras has appointed deputy premier Yannis Dragasakis as the country's economy and development minister in a limited cabinet reshuffle triggered by a rent allowance scandal.

In a statement Wednesday, the government said Dragasakis will also keep his position as deputy prime minister.

The appointment means the 71-year-old economist and one-time senior member of the Greek Communist Party will have more direct involvement in ongoing negotiations with bailout creditors.

He replaces U.S.-based academic Dimitri Papadimitriou who resigned earlier this week along with his wife who held a junior cabinet post after it emerged she had received rent assistance despite having a high income.

Dimitris Vitsas was named as the new migration affairs minister, leaving his post as deputy defense minister. He replaces Yannis Mouzalas due to ill health.