Rajoelina says Madagascar needs donors

By Richard Lough

ANTANANARIVO (Reuters) - Madagascar's Andry Rajoelina said on Wednesday he would not bow to international pressure over the nominations for a transitional government but acknowledged the Indian Ocean island was reliant on donor aid.

Rajoelina -- who unseated former leader Marc Ravalomanana in March after weeks of street protests -- and his political rivals failed last week to agree on who would lead the country towards fresh elections after months of turmoil.

His comments mark a U-turn from his previously bullish rhetoric that Madagascar will turn its back on traditional donors including the European Union and the United States and look to new partners if aid remains frozen.

"We are dependent (on aid). Seventy percent of our finances come from budgetary aid. We won't pull through without these contributions," Rajoelina told a 2,000-strong crowd in the grounds of the city-centre palace.

The 35-year-old former DJ said he would work on breaking the cycle of donor dependency but that it was unavoidable for now.

"We thank the international community for its efforts, but we will not accept outside pressure," he continued.

African nations and foreign powers branded Rajoelina's power-grab a coup. Major donors including the International Monetary Fund, the United States and the EU suspended aid worth hundreds of millions of dollars.

The international community has urged Madagascar's power-brokers to establish a government of national unity ahead of a presidential poll before the end of 2010.