## Press Release: IMF Executive Board Approves US$20.58 Billion Arrangement for Poland Under the Flexible Credit Line

_IMF News, May 6, 2009_

## Source details

**Canonical URL:** [Press Release: IMF Executive Board Approves US$20.58 Billion Arrangement for Poland Under the Flexible Credit Line](https://www.imf.org/en/news/articles/2015/09/14/01/49/pr09153)

## Other formats

- [Markdown version](/en/news/articles/2015/09/14/01/49/pr09153/index.md)
- [Structured JSON version](/en/news/articles/2015/09/14/01/49/pr09153/index.json)
- [Bundle manifest](/en/news/articles/2015/09/14/01/49/pr09153/bundle-manifest.json)

## Bibliographic details
- Published: May 6, 2009

---

### Arrangement details
- One-year SDR 13.69 billion (about US$20.58 billion; 1,000 percent of quota) arrangement for Poland under the Flexible Credit Line (FCL).
- The Polish authorities intend to treat the arrangement as precautionary (they do not intend to draw from the FCL).
- The arrangement is the second commitment under the FCL, after Mexico.

### Rationale and features of the Flexible Credit Line (FCL)
- The FCL was created on March 24, 2009, as part of a major overhaul of the Fund’s lending framework.
- Key features:
  - Particularly useful for crisis prevention purposes.
  - Provides the flexibility to draw on the credit line at any time.
  - Disbursements are neither phased nor conditioned on compliance with policy targets as in traditional IMF-supported programs.
  - Flexible access is justified by the very strong track records of countries that qualify for the FCL, which gives confidence that their economic policies will remain strong.

### Executive Board assessment and Mr. John Lipsky’s statement
- Positive assessment of Poland’s pre-crisis fundamentals:
  - “Poland’s economic growth has been very strong and well-balanced in recent years.”
  - “Private consumption growth has been robust, the external position is sustainable, and the banking sector is well-capitalized.”
  - “The avoidance of acute imbalances during the boom years reflects a very strong and timely policy implementation.”
  - “A long-standing and effective inflation-targeting regime and a freely-floating exchange rate have helped build confidence in monetary institutions and anchor inflation expectations.”
  - “The authorities’ EU commitments and their euro adoption target have provided a strong fiscal anchor.”
  - “Banking supervision has been fully compliant with EU laws and directives.”
  - Institutional strengthening cited: unification of financial supervision and creation of the Financial Stability Committee.
- Assessment of near-term risks and developments:
  - Poland faces the risk of spillovers from the global crisis through both the real and financial sector channels.
  - “Exports have contracted and economic activity has slowed in early 2009, reflecting a deep recession in its main trading partners.”
  - “A sharp slowdown in credit growth is underway as banks have begun to tighten credit criteria.”
  - “Nonetheless, Poland has maintained access to international capital markets.”
- Supportive role of the FCL for Poland:
  - A precautionary FCL arrangement would support the authorities’ policy response, boost market confidence, and place Poland in a better position to manage adverse developments.
  - The FCL arrangement for Poland is expected to have a positive regional impact.

### Authorities’ policy response and commitments
- Monetary policy:
  - The authorities have embarked on a monetary loosening cycle and stand ready to cut rates further if downside risks materialize.
- Financial sector stability:
  - Safeguarded through liquidity provision and intensified surveillance.
- Fiscal policy:
  - Despite the slowdown, the authorities remain committed to the 2009 state budget, primarily by cutting expenditure at the state level.
  - The authorities reaffirmed their full commitment to strengthen the medium-term fiscal framework to maintain a sustainable path for public debt.

### Country background and Fund relationship
- Poland joined the IMF on June 12, 1986.
- Poland’s quota is SDR 1.36 billion (about US$2.06 billion).
- The country’s latest use of Fund resources was under a Stand-By Arrangement that expired on March 4, 1996.

*Press Release No. 09/153 (May 6, 2009).*

---

## Content in this bundle

- [Cr09138pdf (PDF)](/-/media/websites/imf/imported/external/pubs/ft/scr/2009/_cr09138pdf.pdf){rel="external" type="application/pdf"}

---

## References

- [Republic of Poland and the IMF](http://www.imf.org/external/country/POL/index.htm)
- [Mexico and the IMF](http://www.imf.org/external/country/MEX/index.htm)
- [Press Releases](https://www.imf.org/en/news/searchnews)
- [PRESS CENTER](http://presscenter.imf.org/)
- [Press Release No. 09/85](https://www.imf.org/external/np/sec/pr/2009/pr0985.htm)
- [Public Information Notice 09/40](https://www.imf.org/external/np/sec/pn/2009/pn0940.htm)
- [https://www.imf.org/en/home](https://www.imf.org/en/home)

_Source: https://www.imf.org/en/news/articles/2015/09/14/01/49/pr09153_