REUTERS SUMMIT-Raiffeisen Hungary unit sees capital hike this year

* For other news from Reuters Eastern Europe Investment Summit, click on http://www.reuters.com/summit/EasternEuropeInvestment14

* Raiffeisen to inject up to EUR 200 mln into Hungary unit this year

* Profitability by 2016 in Hungary increasingly hard to attain

* Despite tough environment, sale of Hungary unit not on agenda

* Better for Hungary if foreign banks don't pull out - Wiedner (Adds more comments, detail)

By Marton Dunai and Gergely Szakacs

BUDAPEST, Sept 29 (Reuters) - Austria's Raiffeisen Bank International will provide up to 200 million euros ($255 million) of extra capital this year to its Hungarian unit, the subsidiary's chief executive, Heinz Wiedner, told Reuters.

Banks are struggling with new measures imposed on them by the Hungarian government and courts in recent months, Wiedner said at the Reuters Eastern Europe Investment Summit on Monday. Raiffeisen is finding it harder and harder to attain its goal of turning a profit in 2016 after years of heavy losses, he said.

Hungary will force banks to compensate customers for past loan charges, impose new rules on pricing banking products, and initiate a potentially costly conversion of foreign currency loans next year.

The compensation alone carries a price tag of about 3 billion euros for the sector, on top of one of Europe's highest bank taxes and several measures that have cost banks billions of euros in recent years.

Prime Minister Viktor Orban has said banks duped clients with foreign currency loans.

"At the moment we are well capitalised but not for the potential additional losses that we are facing here," Wiedner said. "So we will need additional capital and that is agreed with our owners that they will provide that capital."

"We have put in 60 million euros in September that was put in on top, so there would be up to 200 million more to come, most likely."

Wiedner said that it was probably better for Hungary that the foreign banks struggling to get by there now do not call it quits, despite the government's goal of having the majority of the sector in Hungarian hands and central bank expectations that several more lenders will leave the country.

"Let's assume CIB, Erste, Raiffeisen would all be in local hands here, then who would provide the additional capital at the moment for the types of extra measures? Either the state, or some other individual owners.

"If it was all under local hands, I think the country would have already a much bigger problem in the banking system than today."

SEES NO FURTHER HAIRCUT

Wiedner said the European Central Bank's impending asset quality review and stress tests will probably not have a direct impact on the Hungarian business, but flagged any worsening of tensions between Russia and Ukraine as a risk factor.

Raiffeisen could face fresh losses, however, if the government were to impose further big burdens on banks, he said.

"If we get a package from the government that costs us an additional 100 million-plus (euros) there is nothing we can do to compensate for that," he said. "We can compensate 10 million here or 5 million there - but (not more)."

Raiffeisen already expects a cost of about 240 million euros from the loan refunds bill. A potential further loss-making factor could be the impending foreign currency loan conversion into forints.

However, Wiedner said after the loan refunds the government would probably not impose another haircut on banks. He said he had indirect information through the Banking Association that some government officials were averse to doing the conversion at preferential exchange rates.

"Some people in government circles say they see no reason why it should not be done at market rate," he said. "Whether these people are also the final decision makers is a different question."

Because Raiffeisen wants to preserve its regional network and buyers are few and far between, Wiedner said the sale of the unit was not on the agenda and there were no talks to that end going on at the moment despite the tough environment.

Follow Reuters Summits on Twitter @Reuters_Summits (1 US dollar = 0.7883 euro) (Reporting by Marton Dunai and Gergely Szakacs; Editing by Ruth Pitchford and Hugh Lawson)