WRAPUP 1-Ukraine PM risks losing IMF credit: president's aide

* Presidential aide criticises PM

* Hryvnia hits record low, stock dive 4 pct

* Fitch sees threat to Ukraine rating

By Ron Popeski

KIEV, Oct 27 (Reuters) - An aide to Ukraine's president accused Prime Minister Yulia Tymoshenko on Monday of putting a big IMF credit at risk by linking quick approval of financial legislation with the country's long-running political upheaval.

The International Monetary Fund and Ukraine agreed on Sunday on a $16.5 billion credit for the ex-Soviet state, subject to approval of financial measures by the fractious parliament, which was blockaded last week by the prime minister's allies.

Tymoshenko and her supporters last week blocked discussion of the financial package for four days in order to prevent inclusion in it of any funding for disputed early elections, called by Yushchenko for next month.

Markets were unimpressed by news of the credit. The hryvnia currency sank to a record low, prompting the central bank to abandon a corridor to control its movements.

The tiny stock market plunged a further four percent and credit default swaps, an indication of risk that Ukraine could default on debts, rose to 2,600 basis points from 300 in August.

Ratings agency Fitch said further tumbles in the currency could put Ukraine's rating under pressure, but acknowledged that the IMF accord could help restore confidence.

Parliamentary approval of financial legislation is critical to the deal. The chamber is due to consider the legislation on Tuesday after a weekend of talks to produce a compromise package to ease the effects of the world financial crisis.

But Ukraine also remains gripped by political turbulence sparked by President Viktor Yushchenko's dissolution of parliament and call for a new election.

Presidential aide Andriy Goncharuk said the prime minister was acting against the national interest by lobbying at the same time for the cancellation of the December election.

"It is a pity that the position of the prime minister's office reduces the chances for the country to receive the first tranche of the credit awaited so long by the financial system," Goncharuk said in a statement on the president's Web site.

"An election must be seen as the sole way to resolve the political crisis, not a catalyst for economic problems. The lack of a viable parliament is a much greater risk for the country than a quick campaign and formation of a stable majority."

Yushchenko, long at odds with Tymoshenko, called the election after the collapse last month of a coalition of groups led by him and the prime minister.

"CRIMINAL" ELECTION

Tymoshenko says an election would be "criminal" in the current financial crisis and her backers last week prevented any discussion in parliament of funding for the poll.

With no let up in political turmoil, the hryvnia currency slumped to a record low of 6.2 to the dollar despite the central bank's now routine intervention.

Central bank council chief Petro Poroshenko announced the elimination of a newly-widened 4.554-5.346 corridor. He said intervention had sapped 10 percent of reserves and indicated Ukraine would seek a further $3 billion in international loans.

Analysts have expressed concerned over the ability of the government, firms and banks to refinance.

The head of the IMF mission which has been in Kiev for more than a week praised authorities' resolve, while making no reference to conditions attached to the loan.

"I must say that they (the government and central bank) are being extremely proactive, they have been working on policies in parliament," Ceyla Pazarbasioglu told top officials.

Analysts believe the Fund wants a balanced budget, greater flexibility on currency markets and banking sector reforms.

Tymoshenko said she hoped the chamber would come to a consensus and approve the "anti-crisis package" without delay.

"We fully believe that tomorrow, Tuesday, a package of legislative measures to combat the crisis must be adopted in parliament," she told reporters.

Yushchenko, speaking during a visit to Turkey, also hoped parliament would act quickly on the package.

Parliament's chairman, Arseniy Yatsenyuk, last week said failure to pass the measures could imperil talks with the IMF.

On Monday, he said discussions were proceeding to narrow differences and produce a compromise document.

"There is so far no agreement on a bill and we aren't going to get one," he said.

"My experts are meeting those from different groups to put together the shortest possible document from the 40 pages proposed by the government in order to increase the likelihood of it being approved."

Oleksander Okhrymenko, senior adviser to Ukrgazbank, said the IMF deal might reduce some panic, but he remained sceptical.

"Those who follow the politics and parliament clearly believe that we will never receive the money because it is most unlikely the laws will be adopted," he said. (Additional reporting by Natalya Zinets, Sabina Zawadzki, Yuri Kulikov and by Zerin Elci in Ankara; Editing by Jon Boyle)