Czech Republic - Factors To Watch on Oct 5

PRAGUE, Oct 5 (Reuters) - Here are news stories, press reports and events to watch which may affect Czech financial markets on Thursday:

POLITICAL PARALYSIS MAY HIT CROWN

Czech financial markets shrugged off the fall of Prime Minister Mirek Topolanek's minority government, but analysts warned on Wednesday that political paralysis may hit the crown currency if it drags on.

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- For FACTBOX on process for forming a government, click on [nL03352413].

INTERIM CABINET?

Topolanek wants to form an interim, non-political government with the backing of all parliamentary parties and would be willing to cede the PM job to a regular member of his party if he is asked again by President Vaclav Klaus to form a cabinet, writes the daily Mlada fronta Dnes.

T-BILL AUCTION

The finance ministry offers a tranche of 13-week Treasury bills in an auction to be conducted by the central bank.

- For auction details and results, click on <CNB05>.

C.BANK MEETING

Central bank's governing board meets for a regular weekly meeting. It is not scheduled to discuss monetary policy issues.

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BOURSE NEWS CONFERENCE

The Prague Stock Exchange holds a news conference on the opening of derivative and investment certificate trading at 10 a.m. (0800 GMT).

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NO DATA

No economic data due for release.

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- For calendar of real-time economic data releases and consensus market forecasts, double click on <ECONCZ>.

BOND ISSUANCE TO JUMP

The Czech Republic may hike local currency government debt issuance by up to 41 percent next year, the 2007 budget draft projections showed on Wednesday, raising concern over the market's ability to absorb the rising supply.

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- For a TABLE detailing the government's bond issuance projections, double click on [nPRA000957].

- For bond auction details and results, click on <CNB08>.

UPDATED ECONOMIC FORECASTS

The Czech Finance Ministry has updated its macroeconomic forecasts for 2006 and 2007 in the state budget draft for next year that the government submited to parliament.

- For a TABLE detailing the predictions, double click on [nPRA000956].

ECB WARNS ON REFORM SLOWDOWN

The European Central Bank sent the clearest signal yet that it was concerned by a slowdown in reforms needed to secure euro zone entry for the European Union's largest ex-communist members.

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Overview of past economic data and market forecasts <CZ/ECON15> For Instant Views of key economic data click on [CZ/INSTANT] For summary of economic data and forecasts <CZ/ECON01> 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 <G7TODAY>

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