CEE MARKETS 4-Greek aid news boosts region, zloty rangebound

                                
 * News on Greek aid activation lifts currencies
                                
 * Region's bond markets show no major reaction
                                
 * Zloty down, risk of intervention remains
                                
 
                                
(Updates throughout)
                                
 By Krisztina Than and Dagmara Leszkowicz
                                
 BUDAPEST/WARSAW, April 23 (Reuters) - Emerging Europe's
currencies were mostly higher on Friday, rallying after
debt-choked Greece requested the activation of a multi-billion
euro EU/IMF-led aid package.
                                
 The country appealed to the EU and the International
Monetary Fund for emergency loans aimed at pulling it out of a
debt crisis and easing fears of a 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 about the heavily-indebted euro zone
periphery have dampened investor appetite towards the region in
recent days.
                                
 By 1355 GMT, the Romanian leu <EURRON=> had strengthened 0.3
percent against the euro and Hungary's forint <EURHUF=> edged up
0.2 percent. The Czech crown <EURCZK=> was flat.
                                
 
                                
 ZLOTY UNDERPERFORMS
                                
 The zloty <EURPLN=> fell 0.3 percent. Dealers said Polish
March retail sales data, though much better than expected, did
not have a significant impact on the currency.[ID:nLDE63M0MR]
                                
 "Everyone sees Poland's economy is doing well and all the
positive news has been already priced in," said another dealer
from Warsaw bank.
                                
 Some market players said the zloty's recent rangebound 
performance, despite having room to appreciate further --
reflected concerns over possible intervention on the forex
market.
                                
 Poland's central bank surprised markets earlier this month
with its first intervention since introducing a free float in
2000 to temper the surging currency's impact on exports and the
economy overall.
                                
 A Reuters polls of analysts showed the zloty could gain some
3 percent in the next 12 months. [ID:nLDE6380S7]
                                
 The region's stocks extended recent gains, with most indices
rising around 1 percent.
                                
 Bond markets hardly reacted to the Greek news, with only
Hungarian paper gaining slightly.
                                
 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=>  25,391   25,393   +0,01%   +3,65%
Polish zloty     <EURPLN=>   3,889    3,879   -0,26%   +5,53%
Hungarian forint <EURHUF=> 264,45   265,01    +0,21%   +2,23%
Croatian kuna    <EURHRK=>   7,257    7,256   -0,01%   +0,72%
Romanian leu     <EURRON=>   4,125    4,138   +0,32%   +2,72%
Serbian dinar    <EURRSD=>  99,57    99,57        0%   -3,71%
Yield Spreads
Czech treasury bonds <0#CZBMK=>
3-yr T-bond   CZ3YT=RR    -1 basis points to  52bps over bmk*
7-yr T-bond   CZ7YT=RR   +3 basis points to  +64bps over bmk*
10-yr T-bond   CZ10YT=RR    0 basis points to  +62bps over bmk*
Polish treasury bonds <0#PLBMK=>
2-yr T-bond   PL2YT=RR    -2 basis points to  +353bps over bmk*
5-yr T-bond   PL5YT=RR    -2 basis points to  +296bps over bmk*
10-yr T-bond PL10YT=RR    0 basis points to  +246bps over bmk*
Hungarian treasury bonds <0#HUBMK=>
3-yr T-bond   HU3YT=RR    -3 basis points to  +425bps over bmk*
5-yr T-bond   HU5YT=RR    -2 basis points to  +360bps over bmk*
10-yr T-bond   HU10YT=RR  0 basis points to  +340bps over bmk*
*Benchmark is German bond equivalent.
All data taken from Reuters at 1555 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)