Head of Ukraine PM's party says new coalition agreed

Ukraine's Prime Minister Arseny Yatseniuk chairs a government meeting in Kiev, Ukraine, March 25, 2016. REUTERS/Valentyn Ogirenko

KIEV (Reuters) - Ukrainian Prime Minister Arseny Yatseniuk's party has agreed with President Petro Poroshenko's faction and the Fatherland party - all former coalition partners - to form a new alliance, the head of Yatseniuk's People's Front party, said on Monday.

The deal could spell the end of months of political infighting and corruption allegations that have stymied reforms demanded by Kiev's Western backers and derailed negotiations for a new $1.7 billion loan from the International Monetary Fund needed to prop up the war-torn economy.