* Zloty jumps on IMF credit line news
* Czech industrial data worsens, crown underperforms
* Forint up after new PM endorsed
(Adds details, updates prices)
By Jason Hovet
PRAGUE, April 14 (Reuters) - Poland's zloty jumped more than
2 percent on Tuesday when the country looked ready to request a
$20.5 billion flexible credit line from the IMF, leading gains
for emerging European currencies.
A global equity rebound and G20 pledges for more resources
for emerging markets earlier this month has lifted sentiment for
riskier assets in recent weeks, although analysts and dealers
remained cautious on emerging Europe's market recovery.
But markets have been more bullish on the zloty after heavy
losses pushed it near all-time lows in February and as the
country pushes for 2012 adoption of the euro.
It has been the region's top performer in April with an 10.8
percent rise.
Polish Finance Minister Jacek Rostowski said on Tuesday the
country planned to ask the International Monetary Fund for the
newly-available flexible credit line available for stronger
countries.
IMF chief Dominique Strauss-Kahn said in a separate
statement he expected a quick deal. []
The zloty added 2.7 percent from Friday's domestic close to
bid at 4.255 per euro after trading steady much of the day.
"I think (the credit line) is positive for the currency,"
said Gyula Toth, EMEA strategist at UniCredit in Vienna.
"This flexible credit line is for the good countries... I
don't think this is a sign the country is in trouble."
REST OF THE BUNCH
Poland's more closed economy has slowed sharply in the
global downturn but has fared better than regional neighbours,
and Toth said currencies in Hungary and Romania, which have
higher external financing needs, could stay under pressure.
Some analysts said the Czechs could look to tap the flexible
credit line. The Czech Republic is also seen as stronger
fundamentally but still vulnerable to global demand woes, and
Czech industrial output sank for the fifth straight month in
February, data showed on Tuesday. []
The crown <EURCZK=> lost 0.6 percent to bid at 26.6 to the
euro by 1536 GMT, but has gained almost 4 percent so far this
month and remains the region's only gaining currency in 2009.
In Hungary, the forint <EURHUF=> was up almost 1 percent at
288.15 per euro in thin trade after lawmakers endorsed economy
minister Gordon Bajnai as prime minister to lead the
recession-hit EU member. []
In Romania, where markets were open on Monday while peers
were closed for the Easter holiday, the leu <EURRON=> was down
0.6 percent from Friday but near four-month highs hit after
seeking external aid last month, becoming the third European
Union member to do so after Hungary and Latvia.
Some analysts said Poland's IMF deal, while adding comfort,
would unlikely be tapped.
"The country has no real banking crisis to speak of, only a
liquidity crunch, and we expect 2009 GDP growth to outperform
that of most other countries in the region," said Nomura
emerging markets economist Peter Attard Montalto.
"Nevertheless, we welcome the credit line as a precautionary
measure that Poland can employ should another leg down in this
crisis bring balance-of-payments-type problems."
----------------------MARKET SNAPSHOT-------------------------
Currency Latest Previous Local Local
close currency currency
change change
today in 2009
Czech crown <EURCZK=> 26.6 26.448 -0.57% +0.58%
Polish zloty <EURPLN=> 4.255 4.372 +2.75% -3.29%
Hungarian forint <EURHUF=> 288.15 290.83 +0.93% -8.54%
Croatian kuna <EURHRK=> 7.377 7.394 +0.23% -0.16%
Romanian leu <EURRON=> 4.154 4.127 -0.65% -3.36%
Serbian dinar <EURRSD=> 94.023 94.04 +0.02% -4.83%
Yield Spreads
Czech treasury bonds <0#CZBMK=>
2-yr T-bond CZ2YT=RR -2 basis points to 181bps over bmk*
4-yr T-bond CZ4YT=RR -12 basis points to +217bps over bmk*
8-yr T-bond CZ8YT=RR -14 basis points to +290bps over bmk*
Hungarian treasury bonds <0#HUBMK=>
3-yr T-bond HU3YT=RR +38 basis points to +923bps over bmk*
5-yr T-bond HU5YT=RR +53 basis points to +866bps over bmk*
10-yr T-bond HU10YT=RR +53 basis points to +745bps over bmk*
*Benchmark is German bond equivalent.
All data taken from Reuters at 1740 CET.
Currency percent change calculated from the daily domestic
close at 1600 GMT.
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(Reporting by Reuters bureaus, writing by Jason Hovet; Editing
by Jason Neely and Andy Bruce)
