KIEV, Dec. 22 - Prime Minister Arseniy Yatseniuk has warned that the cash-strapped and war-scarred nation faced an "economic catastrophe" if parliament failed to pass an IMF-backed austerity budget in a Thursday vote, AFP reported.

Deputies are set to debate legislation that could unlock the release of a delayed 1.7 billion dollar (1.6 billion euro) loan from the International Monetary Fund and other Western aid.