KIEV, Feb 25 (Reuters) - Ukrainian President Viktor Yushchenko agreed to hold talks on Friday with his rival, Prime Minister Yulia Tymoshenko on a common agreement they hope would restart the stalled $16.4 billion IMF loan programme.
Yushchenko meet local IMF officials on Thursday, a day after Standard & Poor's became the second ratings agency to downgrade Ukraine on concerns that rowing among the political elite would derail the loan just as the country descends into a deep recession.
"Tomorrow morning I will hold a meeting with representatives of the parliament, the prime minister and the management of the central bank," Yushchenko told a meeting of officials from the IMF, as well as from the World Bank.
"Together with the prime minister and the chairman of parliament, we have prepared a letter of intent to the IMF," he said.
The IMF effectively suspended its programme earlier this month and delayed handing out a second tranche worth $1.84 billion after several of its conditions had been broken.
Its chief complaint appeared to have been a 3 percent budget deficit for this year, despite a clear conditions set out in November that the budget must be balanced.
Analysts have said in recent days that the IMF could soften its stance on the deficit and several senior officials from both Tymoshenko's and Yushchenko's side have said that the IMF would have no problem with a deficit as large as 3 percent.
The IMF was not immediately available for comment. (Editing by Toby Chopra)