CEE MARKETS 1-Leu down after govt tax hike, other FX flat

                                
 WARSAW, June 28 (Reuters) - Romania's leu fell in early
trade on Monday after the government's decision to hike value
added tax raised concerns over the country's ability to secure
an IMF-led aid package.
                                
 Romania will raise value added tax by 5 percentage points to
24 percent, replacing harsh spending cuts rejected by the
country's Constitutional Court last week. [ID:nLDE65P07E]
                                
 Emerging European markets are continuing to keep a nervous
eye on the uncertainty in Romania where the government only
narrowly survived a no-confidence vote earlier this month over
austerity measures, analysts said.
                                
 "Government support is fragile. Markets will not calm down
until the IMF clearly announces what it plans to do," Nicolaie
Alexandru-Chidesciuc, chief economist at ING bank in Bucharest
wrote in a note.
                                
 By 0755 GMT the leu <EURRON=> was down 0.5 percent, while
Bucharest's BET index <.BETI> fell some 2.4 percent.
                                
 Other currencies mostly moved around their previous closing
levels and dealers said that due to lack of domestic
macroeconomic data, the situation in Romania and global
sentiment were likely to set the trend in coming sessions.
                                
 Poland's zloty <EURPLN=> and the Czech crown <EURCZK=> were
almost flat against the euro, with dealers saying they were not
expecting much impact on the Czech currency from Monday's
appointment of a new prime minister.
                                
 Czech President Vaclav Klaus will name Civic Democrat leader
Petr Necas as the next prime minister on Monday, ushering in
what should be the strongest government in a decade to tackle
economic reforms. [ID:nLDE65Q05P]
Necas is leading coalition talks with two other centre-right
parties, TOP09 and Public Affairs, after the three won a
combined 118 seats out of 200 in a May 28-29 election.
                                
 Investors, analysts and rating agencies have cheered the
victory of the austerity-minded parties as the best possible
election outcome, and most-likely grouping to conduct pension
and health reform -- areas in which the country has lagged
neighbours.
                                
 Elsewhere, Hungary's forint <EURHUF=> was slightly stronger,
but dealers said the unit still has room to weaken against the
Swiss franc <CHFHUF=> on moves on the euro/franc.
                                
 The forint fell to a 15-month low of 211.57 <CHFHUF=> versus
the franc last Friday, fuelling concerns over the sizeable
amount of Swiss franc loans held by Hungarian households.
--------------------------MARKET SNAPSHOT--------------------
Currency                    Latest   Previous Local    Local
                                
                                  close    currency currency
                                
                                           change   change
                                
                                           today    in 2010 
Czech crown      <EURCZK=>  25.723   25.722      0%    +2.31%
Polish zloty     <EURPLN=>   4.11     4.111  +0.02%    -0.15%
Hungarian forint <EURHUF=> 283.12   283.71   +0.21%    -4.51%
Croatian kuna    <EURHRK=>   7.195    7.194  -0.01%    +1.59%
Romanian leu     <EURRON=>   4.297    4.275  -0.51%    -1.39%
Serbian dinar    <EURRSD=> 104.13   103.83   -0.29%    -7.92%
All data taken from Reuters at 0955 CET.
Currency percent change calculated from the daily domestic 
close at 1600 GMT.
                                
 
                                
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 (Reporting by Reuters bureaus, Writing by Dagmara
Leszkowicz, Editing by Sonya Hepinstall)