IMF approves $20.6bn credit line for Poland

2009-05-07



The International Monetary Fund (IMF) on 6 May formally approved a $20.58bn (€15.5bn) loan to Poland under its new Flexible Credit Line (FCL) facility.
Finance minister Jacek Rostowski explained last month that the credit line would help stabilise the exchange rate of the zloty, the crucial condition for joining the ERM II mechanism, by significantly increasing the foreign-currency reserves of NBP, the central bank.
The FCL was designed for stable countries with strong fundamentals. It offers access to credit with few strings attached. The facility is to be distinguished from emergency loans provided to countries in danger of default, which come with strict conditions such as public finance reform.
Poland is only the second country to access the FCL after Mexico. The IMF’s decision reflects its favourable view of the country’s efforts in coping with the downturn.