BUCHAREST, April 15 (Reuters) - The Romanian leu was flat on
Thursday after Liberal Prime Minister Florin Citu fired the
health minister and potentially endangered his coalition
government, while other central European currencies and stocks
moved in a tight range.
The dismissal of Health Minister Vlad Voiculescu marks the
first big conflict in the centre-right governing coalition
formed after a parliamentary election in December, as his junior
USR-Plus party was blindsided by the decision.
At 0945 GMT, the leu was flat against the euro at
4.9255 and bluechip index traded 0.1% higher, as markets
bet political tensions would die down.
"It is highly unlikely that USR-PLUS will ... force the
collapse of the ruling coalition, in the middle of peak COVID-19
hospitalizations," JP Morgan said in a note. "A functioning
government and majority are highly needed at this time."
"As long as the majority in parliament survives, ... there
are no meaningful macro implications."
Romanian debt managers would tender 500 million lei worth of
October 2023 treasury bonds later in the day.
"The political crisis is coming at a bad moment,"
Commerzbank said in a note. "The coalition government had only
just managed to convince the rating agencies that it is being
serious about consolidating the household budget that was
getting out of control."
Elsewhere, the Czech crown was up 0.1% against the
euro, while the Polish zloty edged 0.1% lower.
The Hungarian forint slid 0.1% and was trading at
359.1 to the euro.
"The forint is at important levels. The next resistance
level after that is 360," brokerage Equilor wrote in a note.
Hungary"s biggest lender OTP is in talks to buy
Slovenian bank Nova KBM from private equity group Apollo in a
deal worth roughly 1 billion euros ($1.2 billion), people close
to the matter said.
Budapest"s bluechip index was up 0.3% on the day.
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