* Hungary, Czech eye global bonds other than dollars, euros
* Local-currency markets remain key financing source
* Czech to launch euro bond later this yr; Hungary eyes 2011
(Combines Czech, Hungarian official comments)
By Sebastian Tong
LONDON, June 22 (Reuters) - The Czech Republic is preparing
to issue a Eurobond of around 1 billion euros, likely with a
maturity of more than 10 years and possibly to be followed by
issues in currencies other than the euro and dollar.
The deal is postponed from April and is likely to happen
when market conditions improve, a leading official from the
Czech Ministry of Finance told Reuters on the sidelines of a
conference on Tuesday.
"We are waiting for the right situation in the market...The
euro is not the only thing we are looking at. We are looking at
other currencies as well, depending on conditions," Martin
Hlavnicka, head of funding and portfolio management debt at the
ministry, said.
Speaking at the same conference Hungarian counterpart Laszlo
Buzas said there were no plans for another global bond this year
as the country has not drawn down some of an international loan
package agreed with the EU and International Monetary Fund.
He said Hungary would "probably" issue a global bond next
year, possibly in currencies other than the euro.
"We have issued in sterling, Swiss francs. We can clearly
move from one currency to another. There is only one condition,
that we swap everything back into euros," he said.
RIGHT CONDITIONS
The two eastern European states, whose high foreign debt
levels left them exposed during the global financial crisis,
stressed that local-currency markets remained their dominant
source of financing.
"We believe the importance of local currency funding should
be maintained," Buzas, deputy chief executive officer of
Hungary's debt management agency (AKK), told the Euromoney
forum.
"There is no reason why we should raise any foreign-currency
debt. We will only increase our exposure to foreign-exchange
risk and this is not our objective," he said.
Hungary sold a $2 billion bond to mostly U.S.-based
investors at the end of January. The then-government said the
deal covered the total 1.5 billion-euro foreign currency bond
issuance planned for 2010.
Czechs put off the launch of the bond in April due to market
turmoil over the Greek debt crisis. The handover of power
following the May 28-29 elections also held the launch over.
Hlavnicka also said the conclusion of May 28-29 elections
had also lifted some of the Czech political uncertainty that
weighed on investor sentiment.
Hungary's Buzas said the country's financing plans remained
unchanged even with a new government in place.
"It is business as usual ... the (new) government has said
they are committed to the 3.8 pct budget deficit -- the figure
with which we calculated the 2010 financing programme so there
is no change," he said.
The centre-right Fidesz party, which swept to power after
winning April elections with a strong majority, spooked markets
early this month when party officials said Hungary was in danger
of sliding into a Greek-style debt crisis.
(Reporting by Sebastian Tong; editing by Patrick Graham)
