Hryvnia Drops For Third Day - Ukraine Government Weighs IMF Loan

KIEV, Ukraine -- Ukraine's hryvnia dropped for a third day against the dollar after the former Soviet republic said it may need a loan of as much as $15 billion from the International Monetary Fund.

Ukraine's 1 Hryvnia banknote
The hryvnia, which Ukraine's central bank aims to keep within a trading band 8 percent either side of 4.95 per dollar, slid as much as 1.4 percent to 5.3100 per dollar, and was at 5.2800 by 10:36 a.m. in Kiev. It has lost 2.3 percent this week.

The currency also fell against the euro, slipping 1.1 percent to 7.0892, leaving it 2.5 percent lower since Oct. 10.

The country, which had a $7.7 billion current-account deficit in the first seven months of the year, may borrow between $10 billion and $15 billion from the IMF to ``strengthen its position'' amid the seizure in debt markets, Oleksandr Savchenko, Deputy Governor of the central bank, said yesterday. They may sign an agreement as soon as next week, he added.

Ukraine's currency has slumped 13 percent versus the dollar since early September as the collapse of its governing coalition and the financial concerns reignited by Lehman Brothers Holdings Inc.'s failure deterred investors from emerging markets and nations reliant on external funding.

Source: Bloomberg