RPT-UPDATE 1-Slovak euro switch rate to mirror fundamentals

                                
 (Repeats story to additional subscribers without changes)
                                
 BRATISLAVA, Jan 24 (Reuters) - Slovakia will seek to set the
conversion rate of the crown currency to the euro at a level
reflecting economic fundamentals when it negotiates the
switchover, central bank Governor Ivan Sramko said on Thursday.
                                
 "In principle, what is sought for is the real equilibrium
rate which means an exchange rate that will not fundamentally
change the conditions in the economy," he told reporters.
                                
 Slovakia plans to adopt the euro next year and the
conversion rate is expected to be set in June or July, if the
country is judged ready to join the single currency zone.
                                
 The crown has been trading on the strong side of its central
parity within the pre-euro ERM-2 exchange rate band, but it has
lost 1.9 percent to the euro <EURSKK=> in the past two weeks
amid turmoil on global financial markets.
                                
 It traded at 33.785 to the euro at 1100 GMT, up from 33.92
late on Wednesday.
                                
 The market widely believes the euro switchover rate would be
stronger than the current ERM-2 parity of 35.4424 to the euro,
which should help to contain possible inflation pressures after
euro adoption.
                                
 Sramko declined to speculate where the conversion rate may
be set but added the global turbulence could add a new element
to the negotiations.
 "If the crisis deepens, then the gap between the equilibrium
and the market levels may widen," he said.
 (Reporting by Peter Laca, writing by Jan Lopatka; editing by
Tony Austin)