* Leu eases, CHF loan conversion cost to banks may rise * Romanian industrial output recovers but still weak * Hungary to announce changes in debt management * Stocks ease, Croatian central bank may lift GDP forecasts By Sandor Peto and Radu-Sorin Marinas BUDAPEST/BUCHAREST, Oct 12 (Reuters) - The leu continued to ease on Wednesday as concerns over the Romanian government's plan to convert Swiss franc mortgages lingered after parliament postponed a vote on a bill on Tuesday.
Such loans were common in Central Europe before a surge in value of the franc from 2008 caused a rise in defaults. The bill would help local Swiss franc borrowers covert their mortgages to local currency at historical rates.
Conversions schemes have caused market jitters in Croatia, Hungary and Poland in past years due to the costs to banks.
Romanian parliament committees had softened a draft bill on the conversion on Monday, helping the leu rebound from 3-month lows. However, a day later lawmakers overturned some of those proposals and the cost to banks may rise even further, ING analysts said in a note.
The final vote is due next week.
The leu eased 0.3 percent to 4.4965 against the euro by 0856 GMT.
Romanian economic data released on Wednesday failed to give much suppport. The country's industrial output rose by 1.2 percent in annual terms in August, posting recovery for a poor July, but it remained weak relative to regional peers the Czechs, Hungary and Poland, who had 7.5-13.1 percent growth.
Romanian assets may face further pressure from legislation before the country's Dec. 11 elections, while negative inflation gives support to bonds, Raiffeisen analysts said in a note.
Romania's 10-year government bond yield was flat at 2.99 percent and Hungary's corresponding yield was also steady at 2.97 percent.
Both countries have lower credit ratings than Poland. But concerns over fiscal policy keep Polish yields higher, even though the 10-year yield shed 3 basis points to 3.04 percent.
Regional yields mostly rose in the past days amid strengthening expectations for a Fed rate hike in December, but the Hungarian central bank's measures to boost market liquidity are likely to help the country's bonds outperform, a Budapest-based fixed income trader said.
The Debt Agency AKK is also expected to announce a revamp of debt management at a news conference just before its bi-weekly bond auctions on Thursday. Details are unknown.
"I cannot imagine that they would announce anything that could harm the auction," the trader said.
Stocks mostly eased in Central Europe, tracking a worldwide drop due to weak U.S. corporate earnings.