KIEV, Oct. 23 - Ukraine hopes to secure an International Monetary Fund loan without raising household gas and heating prices, Prime Minister Mykola Azarov said on Tuesday.

The IMF froze the $15.2 billion loan to Ukraine in early 2011 after the government had refused to hike natural gas prices for households.

"I think there are prospects of continuing our cooperation and we are mostly performing in line with the (2010) program," Azarov told Reuters.

"All the main monetary and qualitative criteria are being met. Of course, this creates a positive environment for renewing the program. We have our minds set on reaching an agreement."

Azarov said he expected gross domestic product growth, which slowed to 1% in January-September, to remain above zero in 2012 as a whole and accelerate to 3.5% next year.

An IMF team is expected to arrive in Ukraine later this month to discuss pace of the economic reforms program with the government between October 26 and November 2.

IMF Resident Representative in Ukraine Max Alier said earlier this month the team will also discuss measures to create more favorable conditions for bank lending and outline reform priorities for 2013.

The National Bank of Ukraine in September urged the government to reach a compromise with the IMF to unblock access to the $15.2 billion loan that may be needed if the economy continues to deteriorate.

Azarov earlier this year said Ukraine will not agree to hike natural gas prices or take other unpopular measures recommended by the IMF that may have negative impact on the economy. He said Ukraine can handle without the IMF lending.

Meanwhile, there were growing concerns over the world economy after demand for steel, Ukraine’s main exports, had continued to weaken, reducing hard currency earnings by Ukrainian companies.

Azarov, concerned with the weakening steel exports, said the government will restrict imports of the commodity and boost demand for domestically produced steel.

These concerns over the state of the world economy were shared by President Viktor Yanukovych, who ordered the government to pay greater attention to fending off any external shocks. (tl/ez)