* Leu, Romanian stocks down on political worries
* Crown little changed after new Czech PM appointed
(Adds fixed income, detail)
WARSAW, June 28 (Reuters) - Romania's leu fell on Monday after the government's plans to hike value added tax failed to allay concerns over the country's ability to meet conditions of its 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. [
]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.
The IMF's country representative was quoted on Monday as saying the fund's board might delay talks on Romania's 20 billion euros aid package until early July. [
]By 0928 GMT the leu <EURRON=> was down 0.6 percent, while Bucharest's BET index <
> fell some 0.5 percent, recovering some of its previous sharper losses.Other currencies were mixed, but mostly moved around their previous closing levels and dealers said that due to a lack of domestic macroeconomic data, the situation in Romania and global sentiment were likely to set the trend in coming sessions.
NEW CZECH PM HAS MARKET APPROVAL
Poland's zloty <EURPLN=> was a touch down, while the Czech crown <EURCZK=> was 0.1 percent stronger against the euro, though dealers said Czech President Vaclav Klaus's appointment of Petr Necas as prime minister had little impact on the crown.
"Talks continue and if agreement is reached, the Czech Republic will end up with the strongest government in years," 4Cast said.
The Civic Democrats have been holding coalition talks with two smaller centre-right parties, TOP09 and Public Affairs, after the three won a total of 118 seats of 200 in last month's election on pledges of austerity and fighting corruption. [
]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 was slightly stronger against the euro <EURHUF=>, 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.
Hungary's bond yields fell some 5-15 basis points across the curve, while Polish bonds were almost unchanged, with dealers saying the market had already entered holiday mode and that liquidity was low. --------------------------MARKET SNAPSHOT-------------------- Currency Latest Previous Local Local
close currency currency
change change
today in 2010 Czech crown <EURCZK=> 25.706 25.722 +0.06% +2.38% Polish zloty <EURPLN=> 4.113 4.111 -0.05% -0.22% Hungarian forint <EURHUF=> 283.15 283.71 +0.2% -4.52% Croatian kuna <EURHRK=> 7.194 7.194 0% +1.6% Romanian leu <EURRON=> 4.301 4.275 -0.6% -1.48% Serbian dinar <EURRSD=> 104 103.83 -0.16% -7.81% Yield Spreads Czech treasury bonds <0#CZBMK=> 2-yr T-bond CZ2YT=RR -11 basis points to 142bps over bmk* 7-yr T-bond CZ7YT=RR +2 basis points to +162bps over bmk* 10-yr T-bond CZ9YT=RR -6 basis points to +150bps over bmk* Polish treasury bonds <0#PLBMK=> 2-yr T-bond PL2YT=RR -2 basis points to +428bps over bmk* 5-yr T-bond PL5YT=RR -5 basis points to +395bps over bmk* 10-yr T-bond PL10YT=RR -1 basis points to +335bps over bmk* Hungarian treasury bonds <0#HUBMK=> 3-yr T-bond HU3YT=RR -5 basis points to +634bps over bmk* 5-yr T-bond HU5YT=RR -17 basis points to +574bps over bmk* 10-yr T-bond HU10YT=RR -5 basis points to +503bps over bmk* *Benchmark is German bond equivalent. All data taken from Reuters at 1128 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 [
] 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 [ ] Economic Data Guide <ECONGUIDE> Official rates [ ] Emerging Diary [ ] Top events [ ] Diaries [ ] Diaries Index [ ](Reporting by Reuters bureaus, Writing by Dagmara Leszkowicz, Editing by Sonya Hepinstall/Toby Chopra)