- Today the Polish premier announced that Poland is seeking a one-year precautionary arrangement under the IMF’s new flexible credit line (FCL) facility for USD 20.5bn
- It was no major surprise that Poland opted for this opportunity, but is nevertheless good news as it secures Poland’s immediate access to IMF funds if needed.
- Read more about Poland’s application here.
Details
The FCL is – surprisingly – more flexible than the stand-by-agreement (SBA), which countries with weaker fundamentals, such as Latvia, Hungary, and Ukraine, have received recently. The IMF’s Strauss Kahn says that he expects to move ahead quickly to seek approval for Poland’s request. Such an approval would indicate that the IMF considers Poland to have had a sustained record of sound economic policies, which it can now benefit from via easier access to IMF funds (compared to countries like Latvia, Ukraine, Hungary and Turkey).
