CEE MARKETS-Fx firm, forint remains nervous on debt concerns

                                
 BUDAPEST, June 4 (Reuters) - Hungary's forint firmed
slightly on Friday following a plunge on Thursday caused by
comments from a government politician that the country had a
slim chance of avoiding a Greek-style crisis.
                                
 Other Central European currencies also firmed.
                                
 The comments by Hungarian government party Fidesz vice
president Lajos Kosa directed attention to a country so far not
mentioned as part of the European Union's debt crisis, but which
is still under the scrutiny of the IMF and EU after seeking a
bailout in October 2008.
                                
 The forint <EURHUF=>, which fell more than two percent
against the euro after the Kosa comments on Thursday, was 0.4
percent firmer at 279.85 at 0800 GMT on Friday.
                                
 Dealers and analysts said local markets remained nervous as
the comparison with Greece hit confidence even though Hungary's
public debt at 80 percent of GDP was well below Greek levels.
                                
 "It peaks at high level compared to other emerging markets
but Hungary is not Greece unless Fidesz sets off on a route of
large scale, unfinanced tax cuts," SEB analyst Mats Olausson
said in a note.
                                
 The new government said on Friday that it would present an
action plan in the next days, soon after it releases a report on
the budget which it said could have a deficit twice as much as
the former government's target of 3.8 percent.[ID:nLDE65306M]
                                
 Poland's zloty<EURPLN=>, the region's most liquid currency
extended its Thursday gains, strengthening by 0.4 percent to
4.099 against the euro. The Czech crown<EURCZK=> and the
Romanian leu <EURRON=> firmed 0.1 percent.
                                
 Poland's economic growth around 3 percent remains robust,
but other countries in the region struggle to return to economic
growth as recovery in their western European export markets is
slow, and recession has weighed on their budgets.
                                
 Hungary's industrial output rose by an annual 9.7 percent in
April, beating analysts' 8.9 percent forecast [ID:nLDE6530BC],
but attention focused on the budget issue.
                                
 "All investors have in their mailbox the notes this morning
that something happened in Hungary," one dealer said. "What we
have now may be the silence before the storm... (even though)
one interpretation is that... the government backs out from tax
cuts and wants a strict budget policy."
  --------------------------MARKET SNAPSHOT--------------------
 Currency                    Latest   Previous Local    Local
                                
                                  close    currency currency
                                
                                           change   change
                                
                                           today    in 2010 
Czech crown      <EURCZK=>   25.78    25.805  +0.1%   +2.09%
Polish zloty     <EURPLN=>   4.099    4.117  +0.44%   +0.12%
Hungarian forint <EURHUF=>   279.85    281  +0.41%    -3.39%
Croatian kuna    <EURHRK=>   7.259    7.259   0%   +0.69%
Romanian leu     <EURRON=>   4.195    4.197  +0.05%   +1.01%
Serbian dinar    <EURRSD=>   102.8    102.64   -0.16%    -6.73%
All data taken from Reuters at 1000 CET.
Currency percent change calculated from the daily domestic 
close at 1600 GMT.
                                
  For related news and prices, click on the codes in
brackets: 
                                
 All emerging market news [EMRG]
                                
 Spot FX rates Eastern Europe spot FX <EEFX=>
                                
 Middle East spot FX <MEFX=> Asia spot FX <ASIAFX=> Latin
America spot FX <LATAMFX=>
                                
 Other news and reports World central bank news [CEN]
 Economic Data Guide <ECONGUIDE> Official rates [GLOBAL/INT]
 Emerging Diary [EMRG/DIARY]  
                                
 Top events [M/DIARY]  Diaries [DIARY] Diaries Index
[IND/DIARY]
                                
 (Reporting by Sandor Peto)