The Ukrainian government will only be able to reach an agreement with the International Monetary Fund (IMF) to resume a USD 15 billion lending program after parliamentary elections to be held in October 2012, Ukrainian First Deputy Prime Minister Valeriy Khoroshkovsky has said in an interview with Dow Jones Newswires during his visit to London, UKRINFORM reports.

"We understand that's impossible until after the elections," he said.

Khoroshkovsky noted that the government was working on a plan to address the IMF's concerns. He said that the government's energy plan would involve helping households that would be hardest hit by a rise in gas prices, but that it will take between five and six months to sort out the details. "It's very important that we should be fair, and protect the most vulnerable. We want to prepare the population and have a real plan after that [the elections]," Khoroshkovsky said.

In addition, he noted that energy tariffs were not the only issue on which the government and the IMF had yet to reach agreement. "They are demanding a more flexible currency rate," he added.

Khoroshkovsky said that the government "doesn't have any problem" meeting its financing needs this year, and will issue bonds in the local and international markets. However, he said that investors were currently demanding too high a price to invest in Ukraine's bonds, partly because the euro zone's fiscal problems have made them wary of government debt. "We expect there will be a time when there is a good window," Khoroshkovsky said.

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