Poland has become second country after Mexico to receive a flexible credit line from the International Monetary Fund (IMF). The IMF has approved a credit line of $20.6 billion (£13.6 billion).
The new flexible credit line is being offered to strongly performing economies with a solid record of timely and effective policy adjustments.
According to an IMF statement, the Polish government has announced it “intends to treat the credit line as precautionary”.
The IMF says the credit will help Poland maintain access to capital markets and its economy will be better placed to weather the crisis than many regional peers.
Poul Thomsen, the IMF’s mission chief for Poland, said that while the global crisis has hit Poland hard, it has preserved access to international capital markets, contrary to many peers in the region.
The IMF is “already deeply involved in lending to those countries most hit by the crisis”.
IMF-supported programmes are helping countries such as Hungary, Latvia, Romania, and Ukraine fill financing gaps, ease the burden of fiscal adjustment, and repair banking systems, according to the fund. Counting the credit line to Poland, the IMF says it has to date extended loans to Europe worth more than $77 billion.