CEE MARKETS 3-FX weak on political risks, Serbia gets IMF deal

                                
 * Czech, Hungarian government crisis continues
                                
 * Czech cbank holds rates, policy clues sought
                                
 * OTP gains on news of 400 billion forint govt loan
                                
 * Serbia secures 3 billion euro IMF deal
                                
 
  (Updates with Serbia IMF deal, Czech cbank)
                                
 By Marton Dunai
                                
 BUDAPEST, March 26 (Reuters) - Emerging European currencies
eased some on Thursday as political uncertainty in Hungary and
the Czech Republic hung on the region, while the dinar ticked up
after confirmation of a 3 billion euro IMF deal for Serbia.
                                
 The Balkan state replaced an earlier International Monetary
Fund loan with a bigger 27-month programme that enforces
spending cuts and shores up the economy as the global slowdown
seemed nearer a new phase in central and eastern Europe.
                                
  The dinar <EURRSD=> was up 0.5 percent on the day to bid at
94.409 per euro by 1202 GMT. [ID:nLQ938795]
                                
 Investors also awaited developments in the Czech Republic
where centre-right Prime Minister Mirek Topolanek lost a vote of
no confidence on Tuesday. His cabinet must resign but will stay
on while politicians debate the next steps. [ID:nLQ491774]
                                
 Hungarian parties agreed to resume talks on a new prime
minister on Thursday or Friday, with banker Gyorgy Suranyi
tipped as a frontrunner. But he looked likely to take himself
out of consideration if he couldn't get the support of the main
opposition party Fidesz. [ID:nBUD002866]
                                
 President Laszlo Solyom has urged early elections to end the
political gridlock after a weekend decision by Socialist Prime
Minister Ferenc Gyurcsany to step aside.[ID:nLP153011].
                                
 "We are waiting to see what Suranyi will come out with and
what the political wrangling in the background produces," a
Budapest-based currency dealer said.
                                
 The Czech crown <EURCZK=> dropped to a two-week low before
gaining some losses back after the central bank kept interest
rates unchanged. It bid at 27.3 to the euro, while the forint
was 1 percent weaker than the last session at 302.9. The zloty
was down 0.37 percent.
                                
 "We could see more pressure on the crown depending on
today's central bank meeting (comments)," a Prague dealer said.
                                
 
                                
 CZECH CBANK EYED
                                
 The Czech central bank, holding a day after Poland cut to
historic lows, planned a press conference at 1430 GMT.
[ID:nLQ281341] [ID:nLP463148]
                                
 Average bond spreads tightened recently, Komercni Banka said
in a note, but risks for deterioration remain.
                                
 "...Time is approaching for thinking about first hike as
weakening currency is going to push inflation numbers higher,"
Komercni dealers said. "In our opinion chances are now still
bigger for a cut than a hike."
                                
 Polish central bank rate-setter Andrzej Slawinski said on
Thursday that the economy may have come out of its sharpest
slowdown period, pointing to a survey that showed companies more
confident about orders and growth. [ID:nWAR008104]
                                
 In Budapest, OTP <OTPB.BU> shares surged on Thursday, partly
boosted by news that the government had agreed to grant the bank
around 400 billion forints' ($1.80 billion) worth of loans from
IMF funds.
                                
 While in Romania, the IMF asked Western banks on Wednesday
to affirm support for local subsidiaries and back a new 20
billion euro IMF-led rescue package by maintaining exposure. The
leu was slightly firmer on Thursday. [ID:nLP957960]

----------------------MARKET SNAPSHOT-------------------------
Currency                    Latest   Previous Local    Local
                                
                                  close    currency currency
                                
                                           change   change
                                
                                           today    in 2009 
Czech crown      <EURCZK=>   27.3     27.28   -0.07%    -2%
Polish zloty     <EURPLN=>    4.568    4.535  -0.72%    -9.92%
Hungarian forint <EURHUF=>  302.93   299.72   -1.06%   -13%
Croatian kuna    <EURHRK=>    7.46     7.444  -0.21%    -1.27%
Romanian leu     <EURRON=>    4.268    4.275  +0.16%    -5.94%
Serbian dinar    <EURRSD=>   94.409   94.84   +0.46%    -5.22%
Yield Spreads
Czech treasury bonds <0#CZBMK=>
2-yr T-bond   CZ2YT=RR    -2 basis points to  225bps over bmk*
4-yr T-bond   CZ4YT=RR    -24 basis points to  +236bps over bmk*
8-yr T-bond   CZ8YT=RR    -3 basis points to  +312bps over bmk*
*Benchmark is German bond equivalent.
All data taken from Reuters at 1303 CET.
Currency percent change calculated from the daily domestic 
close at 1600 GMT.
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(Reporting by Krisztina Than and Marton Dunai; Editing by Andy
Bruce)