Greece named a new cabinet to end two months of political deadlock and said it would aim to revise the terms of an unpopular EU-IMF bailout deal without risking its euro zone membership.

The announcement came a day after conservative leader Antonis Samaras was sworn in as prime ministe.

This followed a narrow victory over radical leftists who still won a quarter of the vote with their call to tear up the bailout deal.

A joint statement by conservative, socialist and moderate leftist parties in the new coalition said the aim was "to revise terms of the loan agreement without endangering the country's European course and its place in the euro."

The new team also pledged to honour Greece's targets on deficit reduction, debt control and structural reforms after landmark elections on Sunday, amid intense international pressure for Greece to get its reforms back on track.

"The goal is to create the conditions to take the country out of the crisis for good and out of dependence on loan agreements in the future," it said.

The most closely-watched appointment was that of Vassilis Rapanos, chairman of Greece's biggest lender the National Bank of Greece, who will as finance minister spearhead efforts to aid an economy now in a fifth year of recession.

Rapanos, 65, is a former economics professor who served in the economy ministry when Greece joined the euro in 2001 and who has been non-executive chairman National Bank of Greece (NBG) since the end of 2009.

The new foreign minister will be New Democracy's Dimitris Avramopoulos, a former diplomat and ex-Athens mayor who was previously defence minister.

Greek media said Rapanos will be sworn in Saturday after a round of European talks in Luxembourg where the outgoing minister is representing Greece.

The coalition is led by Samaras's New Democracy party and will have the backing of the socialist Pasok party and the small Democratic Left party, although both junior partners did not include their lawmakers in the cabinet.

Some analysts said the move was designed to avoid responsibility for enforcing contested austerity measures, others that it was a way of making the government more popular by promoting technocrats instead of politicians.

European Commission president Jose Manuel Barroso hailed the new line-up saying he was "reassured" by the government's parliamentary support. "I believe that this sends a clear signal of Greece's determination to honour its commitments and stay in the euro," he said.

But Pasok leader Evangelos Venizelos warned earlier that "a major battle" lay ahead for Greece over the bailout at an EU summit in Brussels next week. Greece is hoping for a two-year extension to 2016 for its recovery plan and a further EU-IMF loan of up to €20 billion, a finance ministry source said earlier.

A top EU bailout official meanwhile told the euro zone today that it must order Greece to make fresh budget cuts or raise more taxes, warning that euro zone members will otherwise have to cough up more cash themselves.

Foreign creditors have stressed that they are only willing to give Greece more time to meet a deficit reduction target currently set at 2014 but will not change the actual substance of the bailout deal agreed in February.

Under current conditions, Greece has to cut €11.5 billion - or 5% of its gross domestic product - by 2014. Greece has been forced to seek bailouts twice, first for €110 billion in 2010 and then for €130 billion earlier this year. It has also had a €107 billion private debt write-off.

After being named yesterday, Samaras vowed to do his utmost to restore growth and promised his people they could have hope. "With God's help we will do everything we can to take the country out of the crisis," the 61-year-old said.

His election has eased fears of an immediate euro exit for Greece although some analysts warn financial pressures may eventually prove too much.