wildcard
3rd July 2010, 09:39 PM
http://news.xinhuanet.com/english2010/world/2010-07/03/c_13381509.htm
IMF extends 20 billion dollars credit line to Poland
WASHINGTON, July 2 (Xinhua) -- The International Monetary Fund executive board on Friday approved to extend a one-year Flexible Credit Line (FCL) of 20 billion dollars for Poland.
"The Polish authorities intend to treat the arrangement as precautionary and do not intend to draw from the FCL," said the 187-nation international financial institution in a statement.
The FCL was established in the context of a major overhaul of the Fund's lending framework on March 24, 2009. It is designed for crisis prevention purposes as it provides the flexibility to draw on the credit line at any time.
Poland had already benefited, between May 2009 and May 2010, from the IMF credit line reserved for countries with strong track records and "designed for crisis prevention."
John Lipsky, IMF deputy managing director, said that Poland was "the only EU economy to avoid recession in 2009" and the government maintained access to international capital markets "on favorable terms."
"Poland's very strong policy frameworks and economic fundamentals, together with the additional insurance provided by the successor arrangement under the FCL, put Poland in a very strong position to deal with potential risks and pressures in the event that external conditions deteriorate," Lipsky said in the statement.
"Nonetheless, sizable downside risks remain, stemming from the still-fragile economic outlook in the euro area and the possibility of further spillovers from financial strains in other parts of Europe," he said.
Two other members of the IMF have obtained the flexible credit arrangement, which can be drawn on at any time: Mexico and Colombia.
Poland joined the IMF on June 12, 1986.
IMF extends 20 billion dollars credit line to Poland
WASHINGTON, July 2 (Xinhua) -- The International Monetary Fund executive board on Friday approved to extend a one-year Flexible Credit Line (FCL) of 20 billion dollars for Poland.
"The Polish authorities intend to treat the arrangement as precautionary and do not intend to draw from the FCL," said the 187-nation international financial institution in a statement.
The FCL was established in the context of a major overhaul of the Fund's lending framework on March 24, 2009. It is designed for crisis prevention purposes as it provides the flexibility to draw on the credit line at any time.
Poland had already benefited, between May 2009 and May 2010, from the IMF credit line reserved for countries with strong track records and "designed for crisis prevention."
John Lipsky, IMF deputy managing director, said that Poland was "the only EU economy to avoid recession in 2009" and the government maintained access to international capital markets "on favorable terms."
"Poland's very strong policy frameworks and economic fundamentals, together with the additional insurance provided by the successor arrangement under the FCL, put Poland in a very strong position to deal with potential risks and pressures in the event that external conditions deteriorate," Lipsky said in the statement.
"Nonetheless, sizable downside risks remain, stemming from the still-fragile economic outlook in the euro area and the possibility of further spillovers from financial strains in other parts of Europe," he said.
Two other members of the IMF have obtained the flexible credit arrangement, which can be drawn on at any time: Mexico and Colombia.
Poland joined the IMF on June 12, 1986.