* CEE cbank heads meet in Budapest
* Statement does not contain further coordinated measures
(Adds analyst, background)
BUDAPEST, March 20 (Reuters) - Central eastern European
central banks agreed on Friday to cooperate in monitoring their
economies and financial systems to help fight the effects of the
global financial crisis, the National Bank of Hungary (NBH)
said.
The statement, issued after a meeting in Budapest, did not
point to any further measures by the region's central banks
after a coordinated verbal intervention to prop up their falling
currencies late last month.
The verbal intervention helped stop the currencies' decline
and they have rebounded as global sentiment improved but
analysts say real policy action and a European Union or
International Monetary Fund plan would be needed to underpin the
region.
EU leaders agreed on Friday to double crisis funds available
to members of the bloc that are not in the euro zone to 50
billion euros ($68.5 billion) but more will likely be needed.
"The governors of regional central banks discussed matters of
mutual interest and, among others agreed to continue the
in-depth monitoring of their financial systems and agreed to
extend the cooperation to further strengthen the macroprudential
oversight throughout the region," the NBH said in a statement.
The participants of the meeting were the heads of the
Austrian, Czech, Hungarian, Polish, Slovak and Slovenian central
banks.
"One of the most effective tools would be a package of
funds, from either the IMF, the EU or other organizations, in a
significant amount. That would make it credible that states
getting in trouble have access to funds," said Barbara Nestor,
an analyst at Commerzbank.
"Coordinated policy from central banks would be probably
ineffective. Apparently markets react to news about funding
packages more sensitively," she added.
"There are all kinds of estimates about the gap, what the
region would need. This cannot be tackled with interventions or
interest rate hikes."
Interest rate hikes could further erode already flagging
economic growth and analysts said they would probably fail to
attract capital in the current adverse global environment.
The Czechs and Poles are seen weathering the economic crisis
better than Hungary and its neighbour Romania, which recently
turned to the IMF for help, but as long as financial markets
tend to lump these countries all together, currencies will
likely remain under pressure, analysts have said.
Goldman Sachs said in a note that the EU doubling its crisis
funds was encouraging and positive for currencies in the region
but probably not sufficient to resolve problems.
"The money that the EU is pledging still falls short of the
funding shortfall in the region," it said.
"After the recent rebound in CE-3 currencies, our forecasts
suggest some modest scope for FX weakening in 3-6 months. But
the larger the multilateral assistance that is made available,
the less these currencies may need to adjust," it added.
For a text of the NBH statement, click []
(Reporting by Sandor Peto; Editing by Andy Bruce)
