## Press Release: IMF Executive Board Approves New Two-Year US$30 Billion Flexible Credit Line Arrangement for Poland

_IMF News, January 21, 2011_

## Source details

**Canonical URL:** [Press Release: IMF Executive Board Approves New Two-Year US$30 Billion Flexible Credit Line Arrangement for Poland](https://www.imf.org/en/news/articles/2015/09/14/01/49/pr1115)

## Other formats

- [Markdown version](/en/news/articles/2015/09/14/01/49/pr1115/index.md)
- [Structured JSON version](/en/news/articles/2015/09/14/01/49/pr1115/index.json)
- [Bundle manifest](/en/news/articles/2015/09/14/01/49/pr1115/bundle-manifest.json)

## Bibliographic details
- Published: January 21, 2011

---

### Approval details and key figures
- Press Release No. 11/15; January 21, 2011.
- Executive Board approved a successor two-year arrangement for Poland under the Flexible Credit Line (FCL) in an amount equivalent to SDR 19.17 billion (about US$30 billion, or 1,400 percent of quota).
- Poland’s first FCL arrangement was approved on May 6, 2009 (Press Release No. 09/153).
- A successor arrangement was approved on July 2, 2010 (Press Release No. 10/276).
- The Polish authorities have stated that they intend to treat the arrangement as precautionary and do not intend to draw on the FCL.

### IMF assessment and rationale (statement by Mr. John Lipsky, First Deputy Managing Director and Acting Chairman of the Board)
- Poland’s macroeconomic performance was strong in the decade leading up to the global crisis, supported by sound economic policies.
- Specific accomplishments cited:
  - Inflation was brought down to low single digits.
  - Commitment to the EU Stability and Growth Pact helped lower the fiscal deficit relative to GDP and limit government debt.
  - Strong financial oversight bolstered the resilience of the financial system.
- During the global crisis:
  - Strong policy frameworks allowed countercyclical monetary and fiscal policies while preserving financial sector stability.
  - The FCL arrangement supported investor confidence.
  - Poland was the only EU economy to avoid a recession in 2009, and the government maintained access to international capital markets on favorable terms.
- 2010 developments and outlook:
  - The economy gathered momentum in 2010, underpinned by low interest rates, a neutral fiscal stance, improving external demand, and rising confidence.
  - Economic growth is projected to remain solid and balanced.
  - Authorities are committed to keep implementing economic policies that preserve macroeconomic stability.
- Risks and justification for the FCL successor arrangement:
  - Sizeable downside risks remain, particularly from the possibility of further spillovers of financial turbulence in other parts of Europe.
  - The augmented duration and size of the successor FCL will allow the FCL to play a stronger role in insuring Poland against external risks while supporting the authorities’ overall macroeconomic strategy.

### Flexible Credit Line (FCL): purpose, features, and reforms
- FCL established on March 24, 2009 for countries with very strong fundamentals, policies, and track records of policy implementation; particularly useful for crisis prevention purposes.
- FCL arrangements are approved for countries meeting pre-set qualification criteria (see Press Release No. 09/85).
- Reforms approved August 30, 2010 (Press Release No. 10/321) enhanced the FCL:
  - Duration of the line expanded from one year to up to two years (with an interim review of continued qualification after one year).
  - Removal of the implicit cap on access to resources of 1000 percent of a country’s IMF quota.
  - The repayment period on any drawings is between three and a quarter and five years.
  - Access is determined on a case-by-case basis, and is fully available from the start, rather than being phased over time as in traditional IMF arrangements.
  - Disbursements under the FCL are not conditioned on implementation of specific policy targets or meeting quantitative criteria.
  - There is flexibility to either draw on the credit line at the time it is approved, or treat it as precautionary.

### Qualification criteria for FCL arrangements
- Core purpose: highlight the IMF’s confidence in a qualifying member country’s policies and its ability to take corrective economic policy measures when needed.
- Central assessment: member country has very strong economic fundamentals and institutional policy frameworks; is implementing—and has a sustained track record of implementing—very strong policies; and remains committed to maintaining such policies in the future.
- Specific criteria used to assess qualification:
  - A sustainable external position.
  - A capital account position dominated by private flows.
  - A track record of access to international capital markets at favorable terms.
  - A reserve position that is relatively comfortable when the FCL is requested on a precautionary basis.
  - Sound public finances, including a sustainable public debt position.
  - Low and stable inflation, in the context of a sound monetary and exchange rate policy framework.
  - No bank solvency problems that pose systemic threats to banking system stability.
  - Effective financial sector supervision.
  - Data integrity and transparency.

*Source: Press Release No. 11/15, January 21, 2011 — International Monetary Fund.*

---


## References

- [Republic of Poland and the IMF](http://www.imf.org/external/country/POL/index.htm)
- [Press Releases](https://www.imf.org/en/news/searchnews)
- [PRESS CENTER](http://presscenter.imf.org/)
- [Press Release No. 09/153](https://www.imf.org/external/np/sec/pr/2009/pr09153.htm)
- [Press Release No. 10/276](https://www.imf.org/external/np/sec/pr/2010/pr10276.htm)
- [Press Release No. 09/85](https://www.imf.org/external/np/sec/pr/2009/pr0985.htm)
- [Press Release No. 10/321](https://www.imf.org/external/np/sec/pr/2010/pr10321.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/pr1115_