* Decision on Eurobonds after reforms agreed
* Eurobond would have 10-15 year maturity, benchmark size
* Floater bonds important part of domestic financing
By Jason Hovet and Robert Mueller
PRAGUE, Feb 1 (Reuters) - The Czech Republic is drawing up plans for a 10-15-year benchmark Eurobond of at least one billion euros, with timing to be decided after the government agrees its main fiscal reforms in early spring, the ministry's debt chief said.
In a Reuters interview, the ministry's debt department head Petr Pavelek said he expected the reform plans to send a strong signal to investors but that the central European country was under no urgency to tap international markets at the moment.
"There is no pressure on our side. The domestic market is in good shape, we have enough of a cash buffer," he said. "The crown is another aspect to take into account with the timing of the issue."
The Czechs sold 2 billion euros worth of a 3.625 percent coupon Eurobond maturing in April 2021 in September at 105 basis points over mid-swaps.
The Czech Republic has an 'A' rating from Standard and Poor's and 'A1' rating from Moody's.
Pavelek said the next issue would be at least a benchmark size, or 1 billion euros, which could be raised if demand is high.
He said he hoped for better pricing than in the last issue.
Czech yield spreads over German Bunds have narrowed around 20 basis points since the start of the year to 83.5 basis points on the Czech benchmark 2019 bond.
The Czech Republic sees its gross borrowing need dropping to 219.5 billion Czech crowns in 2011 from 251.6 billion last year.
The Czech centre-right government won power last year with deficit-cutting pledges and markets are now watching for reform plans to the pension, health and welfare systems.
Ratings agencies have said implementation of the reforms may lead to a credit upgrade. Prime Minister Petr Necas has said he wanted reforms ready by early March so they reach lawmakers before the summer recess.
"We expect (details on reform plans) should be a positive signal for markets. We would like to be ready from the documenation and legal side as soon as possible," Pavelek said.
Demand for Czech debt has stayed high since the ministry sold a 2 billion euros Eurobond in September. Bids at the first two domestic auctions of the year doubled the offer, while the crown rose 3 percent versus the euro in January, making domestic debt more attractive.
MORE MARKET TRANSPARENCY
Pavelek said his department would stick to a strategy of selling only the indicated offer amount at domestic auctions, started late last year to improve market transparency. Before it often sold more than planned, upsetting some market players.
Pavelek said the ministry was looking at changing auctions in the second half of the year to possibly sell more than what it is now able to offer -- 85 percent of the offered amount -- in the first, competitive round of auctions.
The rest is offered in a second round where demand drops off.
"It is clear that in the non-competitive part we are not able to reach the indicated amount," he said.
The change would come with plans to implement a new electronic second market platform based on market-making.
He said the ministry planned to sell 30 to 40 percent of domestic debt in the form of variable-rate bonds this year.
The Czechs have sold 56.5 billion crowns of a floating rate bond due 2016, with the last sale in January producing an average yield of 27.211 basis points over the 6-month interbank rate. The ministry has said it would also introduce a new variable-rate bond due 2023 tied to the 12-month PRIBOR in the coming quarter. (Writing by Jason Hovet; editing by Stephen Nisbet)