CEE MARKETS 1-FX mixed, zloty dented by dividend concerns

                                
 PRAGUE, Sept 23 (Reuters) - The Polish zloty hit a one-week
low on Wednesday, dented by expectations of a big corporate
dividend payout, while other central European currencies were
steady as investors turned cautious after recent gains.
A summer rally for emerging assets has started petering out
as governments grapple with widening fiscal gaps and
unemployment creeps up despite signs central Europe is emerging
from the economic crisis.
                                
 The zloty fell back 0.2 percent to bid at 4.17 to the euro
by 0737 GMT, after trading as low as 4.186 earlier. The unit had
showed only a modest gain in the previous session even as
Warsaw's blue-chip index <.WIG20> jumped more than 4 percent.
                                
 "The zloty did not react on the rallying stocks as well as
weakening dollar to the euro," analysts at BRE bank in Warsaw
said in a note. 
                                
 "Elements pressuring the unit are the possibility of
exchanging big flow on the market (for dividend payouts) and a
negative fiscal outlook of rating agencies."
                                
 Shareholders of Poland's largest insurer PZU are set to vote
on a dividend payout on Friday, with markets worried the
expected 12 billion zloty payout will hit bond prices as the
company will be forced to sell treasuries to raise cash.
                                
 Poor results from a Polish bond tender due at midday could
weigh further on the zloty, analysts said. [ID:nLL697462]
                                
 Polish Prime Minister Donald Tusk on Tuesday blamed his main
political rival, President Lech Kaczynski, for an expected rise
in the government budget deficit next year. [ID:nWAR010917]
                                
 He spoke a day after ratings agency Fitch warned of rising
debt levels in central Europe and said ratings could be affected
if serious action was not taken. [ID:nLM191923]
                                
 "The PM is blaming this on the fact that the President and
opposition parties block any government initiative to rein in
spending, while at the same time rejecting Fitch's comments that
the 55 percent/GDP debt mark may be surpassed next year,"
Cheuvreux economist Simon Quijano-Evans said. 
                                
 "The latter point will only hurt sentiment in our view."
                                
 In the Czech Republic, political parties were set to meet
interim Prime Minister Jan Fischer over the 2010 budget draft
ahead of parliamentary debate on Thursday. The crown <EURCZK=>
was a shade weaker at 25.146 to the euro.
Elsewhere, the Hungarian forint <EURHUF=> was steady at
271.1 to the euro, and Romania's leu <EURRON=> edged up 0.1
percent, extending gains since the International Monetary Fund
approved late on Monday Romania's next loan tranche.
--------------------------MARKET SNAPSHOT--------------------
Currency                    Latest   Previous Local    Local
                                
                                  close    currency currency
                                
                                           change   change
                                
                                           today    in 2009 
Czech crown      <EURCZK=>   25.146   25.12   -0.1%    +6.39%
Polish zloty     <EURPLN=>    4.17     4.162  -0.19%   -1.32%
Hungarian forint <EURHUF=>  271.11   271.11    0%      -2.79%
Croatian kuna    <EURHRK=>    7.267    7.275  +0.11%   +1.35%
Romanian leu     <EURRON=>    4.235    4.241  +0.14%   -5.21%
Serbian dinar    <EURRSD=>   93.261   93.267  +0.01%   -4.05%
All data taken from Reuters at 0940 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)