Czech Republic - Factors To Watch on March 20

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NO ECONOMIC DATA RELEASE DUE ON TUESDAY

- For real-time economic data releases and market consensus forecasts, double click on the code in brackets:

[RTRS-LEN-CZ-ECI]

PEGAS EARNINGS

Artificial textile maker Pegas Nonwovens releases 2006 results. News conference with General Manager Milos Bogdan and Financial Manager Ales Gerza is scheduled for 9:30 a.m. (0830 GMT).

Net profit is expected to have fallen 26 percent last year due to rising interest costs and falling margins, a Reuters survey of analysts showed.

[nL15256074] [RTRS-LEN-CZ-PGSNsp.PR]

CEZ STAKE SALE AND BUY-BACK

The Czech cabinet approved a plan to sell a 7 percent stake in electricity generator CEZ , which the company, the country's biggest, said it wanted to counter through a share buy-back.

[nL19456903] [RTRS-LEN-CZ-CEZPsp.PR]

- For most recent stories on the CEZ stake sale, double click on [RTRS-LEN-CZ-CEZPsp.PR-MRG].

INTERVIEW: RATES ON HOLD

The booming Czech economy gives the central bank (CNB) no reason to raise interest rates from the lowest level in the European Union any time soon, CNB Vice-Governor Miroslav Singer told Reuters in an interview.

- For the main news story, double click on [ID:nL19394999].

- For HIGHLIGHTS of Singer's comments, see [ID:nL19461770].

RETAIL SALES

Growth of Czech retail sales quickened to a faster-than-expected pace of 7.7 percent year-on-year in January, as post-Christmas discount sales fed an ongoing rebound in household spending, data showed.

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- For INSTANT VIEWS on economic indicators released earlier this month, double click on the code in brackets: [CZ/INSTANT]

CROWN HITS 2-MONTH HIGHS

The Czech crown rose to two-month highs versus the euro on Monday, building on last week's gains after revaluation of the Slovak crown's euro peg in the ERM-2 exchange rate mechanism boosted regional markets.

[nL19457881]

- For previous updates on crown moves click on [CZK/]

CROWN SEEN FIRMING OVER COMING YEAR

A deep yield discount versus major currencies is likely to hamper near-term gains in the Czech crown, but it is expected to resume its long-term appreciation later this year, a Reuters poll showed.

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- FOR TABLE OF FORECASTS, DOUBLE CLICK ON [ID:L16586055]

NEW ERM-2 PROBLEM

The revaluation of the Slovak crown's parity rate in the ERM-2 highlights a new problem for the exchange rate mechansim: dealing with the relative undervaluation of post-Communist European currencies.

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SLOVAK REVALUATION

The Slovak crown's central parity in the exchange rate mechanism ERM-2, a precursor to euro adoption, has been revalued by 8.5 percent, the European Union's executive Commission said.

[ID:nL16153510]

SOCIAL BENEFITS

Labour and Social Affairs Minister Petr Necas wants to save up to 23 billion crowns ($1.10 billion) on social benefits next year, writes the daily Hospodarske Noviny (page 1 and 3). It says the proposed changes are smaller than had been expected, significant reforms of the social system will not, according to Necas, take place until 2009.

[RTRS-LEN-CZ-POL]

Overview of past economic data and market forecasts For Instant Views of key economic data click on [CZ/INSTANT] For summary of economic data and forecasts For diary of forthcoming Czech events [CZ/DIARY] For calendar of east European economic indicators [CONV/DIARY] TOP NEWS -- Emerging markets [TOP/EMRG] TOP NEWS -- Convergence watch [TOP/EAST]

For an economic indicator diary for the euro zone, the United States and other Group of Seven countries see

For real-time stock market index quotes click in brackets: Warsaw WIG20 Budapest BUX Prague PX

News editor of the day: Alan Crosby on +420 224 190 477; fax: +420 224 229 935

E-mail: prague.newsroom@reuters.com

Reuters Messaging: alan.crosby.reuters.com@reuters.net

($1=20.87 Czech Crown)