Poland Seeks $20.5 Billion Credit Line From IMF

• Author: IMF Survey online

Poland became the second country to seek access to a new credit line from the IMF for strongly performing economies to buttress them against the global economic crisis.

Prime Minister Donald Tusk announced in Warsaw that the country was interested in a one-year precautionary arrangement under the IMF's Flexible Credit Line (FCL) for $20.5 billion.

The IMF's Executive Board will shortly consider a request from Mexico for a precautionary credit line of $47 billion. The new credit line was created as part of a revamp of the IMF's lending facilities announced in March, aimed at strengthening the Fund's ability to react to the global economic crisis.

Strong performer

IMF Managing Director Dominique Strauss-Kahn welcomed Tusk's announcement. "I am very pleased by this positive response from Poland to the invitation I extended to strongly performing economies to use this new instrument to bolster international confidence.

"Poland has a sustained record of sound economic policies," he said. "Its economic fundamentals and policy framework are strong, and the Polish authorities have demonstrated a commitment to maintaining this solid record. I therefore intend to move ahead rapidly in seeking approval by the Fund's Executive Board of Poland's request for an FCL arrangement."

A more flexible approach

As part of its lending reform package, the IMF announced...