Ukrainian Finance Minister Tenders Resignation

Pynzenyk cited differences over a deficit contained in the budget backed by Prime Minister Yulia Tymoshenko.

Finance Minister Viktor Pynzenyk tendered his resignation on Thursday, saying he had become a "hostage to politics" in a dispute with the prime minister over the budget.

Pynzenyk cited differences over a deficit contained in the budget backed by Prime Minister Yulia Tymoshenko, defying the International Monetary Fund which made a deficit-free budget a condition of its $16.4 billion loan.

Ukraine sought the loan to help it weather the global financial crisis which has slashed the value of its hryvnia currency and battered the commodity exporters that form the core of its economy.

"In current conditions, the professional job of finance minister has become a hostage to politics," Pynzenyk said in a statement to parliament that appeared on his ministry's website.

He cited differences in financing the deficit.

"The finance minister cannot change the situation. Nor can he walk away from his professional actions. There is no point in remaining in the job of finance minister in such conditions," he said.

The budget allowed for a deficit equivalent to 3.0 percent of gross domestic product.