KIEV, Oct. 31 - Ukraine's Parliament on Friday approved legislation clearing the way for a $16.5 billion International Monetary Fund crisis loan.

Some 243 deputies voted in favor, above the minimum 226 required to get the measure through.

On Thursday, Parliament had delayed the final vote to Friday because of political wrangling.

President Viktor Yushchenko and his supporters had argued that the measures should be adopted alongside a bill to finance early parliamentary elections, which the president wants to be held in December.

Yushchenko's rival, Prime Minister Yulia Tymoshenko, opposed early polls, but on Friday joined him in backing the deal.

It includes a stabilization fund to help ailing banks and companies unable to service their foreign debts due to the global financial crisis.
Guarantees for bank deposits will also be increased so as to bolster confidence in the banking system, and the government will be able to take a stake in lenders if necessary.

In addition, Ukraine's budget will be tightened and spending cut.
During passage of the legislation, the president failed to get enough support for his call for an early election, with only 189 MPs voting in favor.

Ukraine has been among the countries hardest hit by global financial turmoil as a plunge in the price of steel, its main export, exacerbates a credit crunch and a sharp fall in stock prices.

At the same time, the downturn has become increasingly politicized, with the president earlier in the week blaming the government for the country's problems.

"The government has to accept the lion's share of responsibility for the economy ... The main task is to do everything to stimulate the economy. We need to help the market, raise liquidity," Yushchenko told an investment conference.

Earlier this week Oleksandr Shlapak, a senior figure with the presidential administration, said Ukraine faced bleak prospects for the coming year.

It could expect "a fall in GDP, a drop of up to 40 percent in foreign demand for Ukranian products, and zero industrial growth, or in the best case, two to three percent." (afp/ez)