BUDAPEST, April 1, 2008 (AFP) - Hungary's Liberal party Tuesday said it will quit the coalition government of Socialist Prime Minister Ferenc Gyurcsany on April 30 after he sacked a party member who served as the health minister.

The move came after Gyurcsany suddenly axed Liberal Health Minister Agnes Horvath after proposed medical co-payments mooted by her were shot down in a referendum.

The Liberals' decision to quit was confirmed on Tuesday following a meeting between two coalition party leaders.

Liberal MP Peter Gusztos said: 'The coalition's official dissolution can only be adopted by the party's general assembly, which has been called for the end of the month.'

Meanwhile, Liberal Environment Minister Gabor Fodor, a rival of party president Janos Koka, and his state secretary Kalman Kovacs have refused to say whether they would leave the government.

Koka has promised his party's support to a Socialist minority government, adding that it would back 'all government proposals for reforms' from outside the coalition.

Koka said snap polls were to be avoided at all costs, adding: 'We want to prevent (opposition Fidesz party leader) Viktor Orban's return to power.'

Financial markets and the Budapest stock exchange welcomed the Liberals' move Tuesday: the forint rose to 257 against the euro, from 261 on Monday, while the BUX index rose by 1.2 percent, stabilising at 22,000 points.