* Hungary investors digest pension plans
* Romania to auction euro debt to meet maturing debt
PRAGUE, Nov 25 (Reuters) - Emerging European currencies were
mixed on Thursday, with a rise in stock markets giving support
to the region even as investors stayed wary due to anxiety about
the reverberations of the euro zone debt crisis.
In Hungary, investors were weighing more details of the
government's changes to the pension system aimed at shoring up
the budget.
Hungary's government gave taxpayers until the end of January
to return to the state pension scheme or face drastic cuts in
future entitlements, a move that private pension funds on
Wednesday denounced as "outright blackmail". []
The new rules, to be approved by parliament by Dec. 15, are
aimed at pushing the 3 million mandatory private pension fund
members holding about 3 trillion forints ($15 billion) worth of
assets to return to the state pension system.
"In the short term this can support the forint if foreign
assets are converted (during the transfer into the state
pillar); however, given the uncertainty about the details, I
would not bet massively on that for now," a Budapest trader
said.
The forint <EURHUF=> was steady on the day, bidding at
275.25 to the euro by 0852 GMT, while the Polish zloty <EURPLN=>
dipped 0.2 percent to wipe out some gains from Wednesday. The
Czech crown <EURRON=> and Romanian leu <EURRON=> added up to 0.2
percent.
Stock markets rose by up to 0.6 percent, led by Prague
<>.
Dealers expect quiet trade with the United States off for
the Thanksgiving holiday, and added that while Ireland's
austerity plans have calmed markets somewhat worries are growing
about spillover into other highly indebted euro periphery states
such as Portugal.
"It's one thing what's going on with Ireland, but more
importantly, the question is whether this (crisis) escalates,"
the Budapest dealer said.
ROMANIA DEBT SALE
In Romania, which with Hungary has been among the most
vulnerable to risk aversion associated with the euro zone debt
crisis, the finance ministry plans to sell 1 billion euros ($1.3
billion) in 3-year, 4.5 percent coupon bonds on the local
market.
The issue would help repay 1.4 billion euros worth of
treasury bills that mature at the end of November, and analysts
expect a successful sale. Depending on the price the ministry is
willing to accept, they could raise more than planned.
Romania has struggled with local currency debt sales this
year and has been unwilling to accept higher yields demanded by
investors due to risks around the government budget plans needed
to meet international aid conditions.
Analysts still say borrowing in euros carries more risks
than benefits in the long run.
"If they pay between 4.7 and 5 percent (today), they will
probably get more than 1.4 billion euros," Nicolaie
Alexandru-Chidesciuc, ING Bank Romania's chief economist, said.
--------------------------MARKET SNAPSHOT--------------------
Currency Latest Previous Local Local
close currency currency
change change
today in 2010
Czech crown <EURCZK=> 24.66 24.702 +0.17% +6.72%
Polish zloty <EURPLN=> 3.965 3.957 -0.2% +3.51%
Hungarian forint <EURHUF=> 275.25 275.22 -0.01% -1.78%
Croatian kuna <EURHRK=> 7.412 7.41 -0.03% -1.39%
Romanian leu <EURRON=> 4.297 4.303 +0.14% -1.39%
Serbian dinar <EURRSD=> 107.00 106.99 -0.01% -10.39%
All data taken from Reuters at 0953 CET.
Currency percent change calculated from the daily domestic
close at 1700 GMT.
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(Reporting by Reuters bureaus, writing by Jason Hovet; Editing
by Ruth Pitchford)
