Ukraine PM says no retreat on reforms to win next IMF tranche

Ukraine has so far received $5 billion from the Fund from its overall pledge of $17.5 billion. To get the rest, it must implement reforms including legislative changes to the banking system and energy sector.

A further five laws must be passed within the NEXT (NXT.LO)couple of weeks for Ukraine to receive the next tranche, worth $1.7 billion, in July, Yatseniuk told parliament.

"They won't give us the money for nothing, only in exchange for real reforms... By July 10 we have to go to the IMF board of directors meeting to receive the next tranche," he said. "We can't retreat, even by a half-step."

Of the remaining laws to be passed, four have already been backed in the first reading and require one more round of voting. They relate to state energy firm Naftogaz, utilities tariffs, anti-corruption efforts, and banking practices.

One law concerning the state utilities regulator was rejected in the first reading, but will be debated again by parliament.

The IMF cash is part of a broader $40 billion bailout programme aimed at shoring up Ukraine's economy, which has been pushed close to bankruptcy by years of economic mismanagement and conflict with pro-Russian separatists.

Ukraine is expected to come up with $15 billion of this by restructuring its sovereign and quasi-sovereign debt, but talks with creditors have soured over the finance ministry's insistence on a writedown on bonds' principal.

Kiev's position has been bolstered by the IMF, which last week said it would continue to lend to Kiev even if debt talks failed.

The next tranche of IMF money will unlock funding from the European Union, amounting to 600 million euros (430.62 million pounds).

(Reporting by Natalia Zinets; Writing by Alessandra Prentice; Editing by Mark Trevelyan)