KIEV, April 13 – Parliament on Tuesday will debate and vote on Prime Minister Yulia Tymoshenko’s anti-crisis legislation, the approval of which is crucial for the International Monetary Fund’s decision to resume lending to cash-strapped Ukraine.

An IMF team arrived in Kiev last week for talks with the government on the resumption of lending within $16.4 billion loan following assurances from Ukrainian leaders that the legislation will be approved.

Parliament rejected most of the anti-crisis bills on March 31, and the vote on Tuesday gives the government perhaps the last chance to fix the problem before the IMF decides on Ukraine lending next month.

“The package of anti-crisis legislation will be debated on Tuesday,” Andriy Kozhemiakin, a senior member of the Tymoshenko Bloc, said in an interview with Channel 5 television late Monday.

Tymoshenko, who does not control majority of Parliament, needs the legislation to be approved for the IMF to disburse at least $1.85 billion installment to Ukraine, the money that will be used to help pay its foreign debt obligation.

But Tymoshenko said Thursday the government will ask the IMF to disburse two installments in one shot, an indication that the government has been facing credit crunch.

Ukraine, whose revenue from exports collapsed due to weak demand for steel, needs IMF money to avoid default on foreign debts this year and next, analysts said. Tymoshenko repeatedly denied reports that the country has been facing default.

Meanwhile, Ceyla Pazarbasioglu, the leader of the IMF team, said progress has been made in the talks with the government over the past five days

"We have moved ahead rather significantly in our discussions," Pazarbasioglu said at a briefing in Kiev on Monday.

President Viktor Yushcheko planned to hold a meeting with political group leaders late Monday to persuade them to support the legislation on Tuesday, according to Oleksandr Shlapak, first deputy chief of the Yushchenko office.

Shlapak said the government and the National Bank of Ukraine should also join forces to work out within the next two days a bill on recapitalization of banks. The bill will later be submitted to Parliament.

“We count on IMF directors holding a meeting in the second ten days of May that would approve decision on the first review of the [Ukraine] program, meaning the second tranche will be released to Ukraine,” Shlapak said. (tl/ez)