Ukraine`s Yushchenko Hopes For IMF Settlement

Ukraine has clinched a $16.4 billion loan deal with the IMF to help offset the effects of the world financial crisis.

Ukrainian President Viktor Yushchenko said on Wednesday he hoped to reach a settlement soon with the International Monetary Fund (IMF) on conditions for receiving further credits for his country.

Ukraine has clinched a $16.4 billion loan deal with the IMF to help offset the effects of the world financial crisis. But the Fund has suspended release of the loan's second tranche while discussions proceed on several issues, including the size of the budget deficit.

"It is very important to resume cooperation with the IMF," Yushchenko, speaking through a translator, told reporters after meeting European Commission President Jose Manuel Barroso. "The one crucial thing is the budget deficit."

"After we settle our relations with the IMF -- which I hope will happen in the coming days -- we will cooperate with the European Investment Bank, the EBRD (European Bank for Reconstruction and Development), with the European Commission and others," he said.

Ukraine's parliament paved the way for a settlement on Tuesday by meeting conditions for such credits by altering provisions of the 2009 budget giving the government leverage over the activities of the central bank.

"The agreement with the IMF is critically important, because this will improve the business and investment climate and international confidence in Ukraine," said Barroso.

He said he had urged Yushchenko to drop his long-running power struggle with Prime Minister Yulia Tymoshenko.

"When a country faces such difficult economic and social challenges, it is the duty of all responsible politicians to work together for the common good of the country," he said.

"This is the message I conveyed to President Yushchenko, and I hope also to have the opportunity to convey that to Prime Minister Tymoshenko when she comes here," he added.