* Czechs parties end deadlock on new cabinet nominees
* Deputy Finance Minister Janota proposed to head ministry
* Janota is specialist in budget, debt issues
* Markets little moved, awaiting signs of budget moves
(Adds Janota, analyst, opposition, PM presenting list)
By Mirka Krufova
PRAGUE, May 5 (Reuters) - Czech leaders agreed on a new
finance minister on Tuesday, removing the last barrier to
appointing a new caretaker government that will rule until
October elections and battle a deepening economic downturn.
Outgoing Prime Minister Mirek Topolanek proposed
current deputy minister Eduard Janota to head the ministry in an
attempt to find a candidate who can tackle sharp growth of the
budget deficit as revenues collapse.
The finance ministry had been the main point of contention
between the main Czech political parties, who are trying to form
an interim government under Prime Minister Jan Fischer.
The technocrat government is due to replace Topolanek's
administration, which lost a confidence vote in March, midway
through the Czechs' European Union presidency.
Janota, 57, is an acceptable candidate across the board. The
opposition Social Democrats, who had blocked the previous plan
calling for current minister Miroslav Kalousek to stay on, said
they agreed with the nomination.
The respected 31-year veteran at the Finance Ministry is a
deputy finance minister in charge of drawing up budgets and
managing state finances.
Fischer was due to present his government list to President
Vaclav Klaus later on Tuesday. Klaus is expected to appoint the
cabinet on Friday.
BORROWING JUMP
Worries whether the government would have the authority to
take firm action on growth and the budget have undermined Czech
markets in recent months, leaving it lagging a partial recovery
for other of central Europe's battered currencies.
The Czech crown <EURCZK=> was weaker for most of the morning
compared to regional peers but rebounded to add 1 percent at
1154 GMT.
"From an economic point of view, it is good news judging by
Janota's track record," JP Morgan EMEA economist Miroslav
Plojhar said.
"But for markets it's not a significant piece of news. The
spread of Czech bonds against swaps is linked to the fact that
the finance ministry, with or without Janota, must issue much
more debt than planned."
Data on Monday showed the budget deficit had already doubled
on an annual basis in April, exceeding the full-year plan and
the finance ministry has signalled it could issue another 90
billion crowns in domestic debt in months ahead.
The overall fiscal gap looks set to reach 4.5-5 percent of
gross domestic product for the full year, far above the
3-percent ceiling for adopting the euro and three times last
year's 1.5 percent of GDP.
(Writing by Jana Mlcochova; Editing by Patrick Graham)
