* Yushchenko says economy shrank 25-30 pct yr/yr in Jan-Feb
* Crisis has slashed exports by 60 percent, he says
* Calls for end to political rows, new chamber of parliament
* Urges support for banks, cut in budget expenditure
* Parliament delays action on IMF-linked legislation
By Ron Popeski
KIEV, March 31 (Reuters) - Ukrainian President Viktor Yushchenko called on Tuesday for concerted action to reverse a drop of up to 30 percent in economic output which has slashed jobs and living standards.
Parliament, however, failed even to consider some of the legislation linked to resuming a flow of credits from the International Monetary Fund. Prime Minister Yulia Tymoshenko blamed members linked to the president, her former ally turned rival, and vowed to secure approval by the end of the week. In a 45-minute state of the nation address to parliament, Yushchenko said the economy shrank 25-30 percent year-on-year in January-February and he demanded changes to the 2009 budget.
The president urged politicians to end the rows which have thwarted reform efforts as Ukraine gears up for next year's presidential election. He also proposed political change, including the creation of a second chamber of parliament. "We were ill-prepared to confront the crisis and its first blow was painful and difficult...," Yushchenko told deputies.
"The consequence of this was a slowdown in GDP growth in 2008 to 2.1 percent...and a destructive fall of 25-30 percent according to figures from January-February 2009."
Growth in the first two months of 2008 was 5.8 percent.
"Before the crisis, (annual) growth rates in the Ukrainian economy stood at 6.5-7.0 percent. I believe, I am certain that this indicator will be restored," the president said.
"We have lost our foreign markets and 60 percent of Ukrainian exports. All our foreign currency earnings depended on these markets as did the jobs of nearly two million people in steel, chemicals and related sectors."
PARLIAMENT DELAYS BILLS
Parliament later passed two bills intended to win the release of credits from a $16.4 billion IMF loan -- including increases in excise taxes on tobacco, alcohol and diesel fuel.
But deputies declined to place other pieces of legislation on the agenda, including measures to balance the finances of state energy firm Naftogaz and the state pension fund.
"I believe the vote was cynically undermined by groups of deputies linked to the president," Tymoshenko told reporters.
"We cannot be sure that the IMF mission will return to Ukraine if we do not carry out in full specific parts of the joint programme. We must adopt these bills this week."
Opposition leader and ex-prime minister Viktor Yanukovich said his group, parliament's largest, could not support the bills as he saw no overall plan to tackle the crisis.
He also vowed to intensify protests later this week to demand the resignation of Ukraine's current leaders, though rallies staged last week drew only modest crowds.
The IMF suspended credits in a disagreement over the implementation of reforms and the size of the budget deficit.
Yushchenko said the first steps to take were a cut in budget expenditure and measures to support the banking system.
"We must review the 2009 budget immediately and fundamentally," he said. "We must reduce all unproductive expenditure and once and for all live within our means."
The IMF initially insisted on a deficit-free budget, but now says it can accept a deficit if financing is ensured.
Ukraine politics has focused for more than a year on political disputes pitting Yushchenko against Tymoshenko. Yushchenko said it was time to "halt political passions and impose a moratorium on conflicts and settling of accounts".
The president said creating a second chamber of parliament would help to take account of regional interests and called for a referendum to endorse the change.