By Jan Lopatka and Jana Mlcochova
PRAGUE, Feb 25 (Reuters) - The Czech Republic supports a discussion on aid to the central and east European countries worst affected by the global financial crisis but clear distinctions must be made between those who need it and who do not, Czech Finance Minister Miroslav Kalousek said on Wednesday.
Kalousek said the Czech Republic, which holds the European Union's rotating presidency, did not need foreign aid and was trying to prove that fact by steps such as participating in a lending package to badly-hit Latvia.
Kalousek told Reuters in an interview he was not keen on an Austrian plan to help out banks in the region in its proposed form.
"I admit I am exceptionally reserved toward the plan as it has been proposed, because the region is thrown into the same bag," he said. "I believe this is an untrue and distorted picture."
"Our view of course is (in favour of) an individual approach. I think that each country which gets into such trouble needs its own individual approach."
Czech authorities including the central bank have been on an offensive to paint the Czech Republic as a place that is safer than some other countries due to relatively low exposure to foreign debt, and relatively small budget gaps and stable banking system.
The country's large manufacturing sector has however been badly hit by collapse of demand in key west European markets, and output has been shrinking since the last quarter of 2008.
The crown currency has dropped 5.7 percent to the euro so far this year to 28.335