CEE MARKETS 3-Greek aid news helps FX, stocks rebound

                                
 * News on impending Greek aid activation lifts currencies
                                
 * Local bond markets show no major reaction
                                
 * Crown weighed by dovish rate comments
                                
 
                                
(Updates prices)
                                
 By Krisztina Than and Dagmara Leszkowicz
                                
 BUDAPEST/WARSAW, April 23 (Reuters) - Emerging Europe's
currencies trimmed their losses on Friday, rallying after
debt-chocked Greece requested the activation of a multi-billion
euro EU/IMF-led aid package.
                                
 Prime Minister George Papandreou asked for the activation of
the package aimed at pulling the euro zone member out of a debt
crisis and easing fears of a Greek default.
                                
 "This is good information and if market players can be
confident about this (agreement), it should definitely provide
support for our region," said one Warsaw-based dealer.
                                
 Central and eastern European assets have not been
significantly impacted by Greece's debt woes so far, thanks to
the region's relatively buoyant growth outlook and low debt and
budget deficit levels.
                                
 However, worries over the heavily-indebted euro zone
periphery have dampened investor appetite for the region's
assets in recent days.
                                
 By 1111 GMT the Romanian leu <EURRON=> had strengthened 0.3
percent against the euro, while Hungary's forint <EURHUF=> edged
higher by some 0.2 percent.
                                
 The Czech crown <EURCZK=> was flat to the euro after central
banker Vladimir Tomsik said on Thursday there was room to cut
rates further and that a recent rise in the crown threatened the
country's inflation target and growth prospects. [ID:nLDE63L1DF]
                                
 The Polish zloty <EURPLN=> was 0.1 percent down versus the
euro. Dealers said the country's retail sales data, though much
better than expected, did not have a significant impact on the
currency.
                                
 "There was no reaction after the data," said another dealer
from Warsaw bank. "The data is not boosting the market because
everyone sees Poland's economy is doing well and all the
positive news has been already priced in."
                                
 Poland's retail sales rose 8.7 percent in March on an annual
basis and surged by more than 20 percent in monthly terms.
[ID:nLDE63M0MR]
                                
 The region's stocks extended their previous gains, with most
indices rising more than 1 percent, though the bond market has
not yet reacted to the Greek news, with only Hungary's papers
gaining slightly after the news.
                                
 Hungarian dealers said the market was still optimistic about
the outlook for the forint which could get a boost from Sunday's
run-off parliamentary elections if the centre-right Fidesz party
-- which won the first round -- extends its gains to the
two-thirds majority that would give it a mandate to implement
major reforms.
                                
 Hungary's central bank is expected to cut rates by another
25 basis points on Monday to a new all-time low of 5.25 percent.
[ID:nLDE63K1XG] [ID:nLDE63K2J8]
--------------------------MARKET SNAPSHOT--------------------
Currency                    Latest   Previous Local    Local
                                
                                  close    currency currency
                                
                                           change   change
                                
                                           today    in 2009 
Czech crown      <EURCZK=>  25,395   25,393   -0,01%   +3,63%
Polish zloty     <EURPLN=>   3,883    3,879   -0,1%    +5,69%
Hungarian forint <EURHUF=> 264,5    265,01    +0,19%   +2,21%
Croatian kuna    <EURHRK=>   7,256    7,256       0%   +0,73%
Romanian leu     <EURRON=>   4,125    4,138   +0,32%   +2,72%
Serbian dinar    <EURRSD=>  98,5     99,57    +1,09%   -2,66%
Yield Spreads
Czech treasury bonds <0#CZBMK=>
3-yr T-bond   CZ3YT=RR    -2 basis points to  51bps over bmk*
7-yr T-bond   CZ7YT=RR   +2 basis points to  +63bps over bmk*
10-yr T-bond   CZ10YT=RR    -2 basis points to  +60bps over bmk*
Polish treasury bonds <0#PLBMK=>
2-yr T-bond   PL2YT=RR    -4 basis points to  +351bps over bmk*
5-yr T-bond   PL5YT=RR    -3 basis points to  +296bps over bmk*
10-yr T-bond PL10YT=RR    -3 basis points to  +245bps over bmk*
Hungarian treasury bonds <0#HUBMK=>
3-yr T-bond   HU3YT=RR    -4 basis points to  +427bps over bmk*
5-yr T-bond   HU5YT=RR    -3 basis points to  +361bps over bmk*
10-yr T-bond   HU10YT=RR  -2 basis points to  +337bps over bmk*
*Benchmark is German bond equivalent.
All data taken from Reuters at 1311 CET.
Currency percent change calculated from the daily domestic 
close at 1600 GMT.
                                
 
                                
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(Reporting by Reuters bureaus, Writing by Krisztina
Than/Dagmara Leszkowicz; editing by John Stonestreet/Toby
Chopra)