Peruvian President Alan Garcia has appointed Javier Velasquez - a party loyalist and president of Congress - as the country's new prime minister in a major cabinet reshuffle.

Mr Velasquez replaces Yehude Simon, a former leftist, whose reputation was tarnished in a crisis in June over indigenous land rights in the Amazon rainforest. When security forces tried to end a blockade of roads and fuel pipelines by indigenous people, fierce clashes left 34 dead. Mr Simon had been picked by President Garcia in 2008 with the goal of putting a "social face" on the president's free-market policies.

Opposition politicians have criticised the new prime minister. Ollanta Humala's left wing Nationalist Party says Mr Velasquez is more of the same and does not represent a change in the economic path that the country needs.

President Garcia has also named seven new ministers, including the defence, justice, agriculture and interior affairs portfolios. Former police chief Octavio Salazar has replaced Mercedes Cabanillas - who denied responsibility for last month's deadly police operation - as interior minister.

Photo of Peruvian President Alan Garcia by Luis Ramos (flickr)