Belarus's troubled rouble slid to record lows on Thursday ahead of a visit by Russian Prime Minister Vladimir Putin which could toss the ex-Soviet republic a credit lifeline to haul it out of financial crisis. The national currency continued a downward spiral, weakening to 8,000/9,000 against the dollar in thin trading on the interbank market, from 7,100/7,600 on Wednesday, market sources told Reuters.
Market players were awaiting the outcome of a meeting between Putin and Belarussian President Alexander Lukashenko with speculation that the Russian leader might disclose details of a Moscow-backed aid package. Putin was scheduled to have talks with Lukashenko on Thursday night after a meeting of heads of a regional anti-crisis fund established by some ex-Soviet republics.
Russia says talks are underway with Belarus over a potential $3 billion loan over three years from this fund. It says Minsk could raise a further $3 billion through privatisation. The currency crisis in Belarus, which runs a Soviet-style economy with many vital sectors under state control, is eroding Belarussians' rouble savings and is causing a shortage of imported goods such as medicines. It appears to be pushing Belarus, whose leader is on poor terms with the European Union over a crackdown on the opposition, more towards Russia even though Lukashenko has had uneven relations too with Moscow over the years.