Ukraine parliament to resume debate on IMF moves

11:14, 30 October 2008
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There was no fresh attempt to blockade proceedings

Ukraine`s parliament proceeded with consultations on financial legislation needed to secure $16.5 billion in IMF credits, with a full-scale debate to give the package final approval due later in the day, Reuters reported.

Chairman Arseniy Yatsenyuk told deputies a committee was examining amendments to produce a single text for deputies` consideration.

He proposed a plenary session from 1400 GMT to debate the amended package aimed at stabilising Ukraine`s financial position and banking system. There was no fresh attempt to blockade proceedings as had occurred for more than a week in a row over an early election.

The chamber gave initial backing to the package in first reading on Wednesday, urged on by leaders saying the $16.5 billion in International Monetary Fund credits depended on quick parliamentary approval.

The IMF and Ukraine last weekend clinched a preliminary agreement to shield the ex-Soviet state from the effects of global financial turmoil.

Analysts have said Ukraine will have a hard time repaying its debts at a time when global lending has ground to a halt. Battered by a gaping current account deficit, its hryvnia currency has plunged to record lows, making dollar debts even more expensive to service.

The hryvnia lost about 14 percent of its value on Wednesday, falling to a record low of 7.2 to the dollar, despite central bank intervention. Intervention has sapped 10 percent of the bank`s reserves in October.

Reuters via Guardian

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