(Reuters) Ukraine's interest rate policy will depend on the quality of the cash-strapped republic's state borrowing in the next three weeks, National Bank chairman Viktor Yuschenko told a news conference on Friday.
'We are having very serious talks with the Ministry of Finance and the Cabinet of Ministers right now about improving the situation with borrowing in the next three weeks,' Yushchenko said.
'The National Bank's answer concerning the revision of this policy [on interest rates] will depend on how these borrowings turn out.'
As unrest on emerging markets, in Russia particularly, escalated last month, the central bank was forced to raise interest rates, now at 51 percent, twice in a bid to persuade foreign investors not to abandon its debt market completely.
Yields on short-term Treasury bills have soared in recent weeks. An issue of 70-day bills sold to yield an average of 73.67 percent on Thursday compared with an average of 71.78 percent at an auction the previous day.
One-year paper sold to yield an average of 61.80 percent at Thursday's auction, after the previous issue of one-year bills the week before yielded an average of 60.50 percent.
