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Friday 17th of April 2009
April 14, 2009

Poland seeking $20bn loan from IMF


by Peter Charalambous
”Poland

Despite Poland previously stating that it did not need help, the International Monetary Fund (IMF) has announced it is in the process of considering loaning $20 billion (£13.44 billion) after weeks of speculation.

According to the IMF’s managing director, Dominique Strauss-Kahn, the IMF board is considering a one-year flexible credit line arrangement after Poland’s Prime Minister, Donald Tusk, announced that the nation was seeking a one-year precautionary arrangement under the IMF’s Flexible Credit Line for $20.5 billion.

The move comes after the G20 meeting in London earlier this month, whereby the IMF’s lending resources were increased to $750 billion.

Jacek Rostowski, Poland’s Finance Minister, has said that the cash will be used to increase bank reserves and make the economy more stable in the current climate. However, he was keen to point out that the measure was not emergency funding but merely a reserve call.

After Mexico, Poland is the second country to take up the IMF’s Flexible Credit Line which works as a reward to countries that have well managed economies to be able to access credit easily.

It also allows for increased flexibility as once the credit line has been agreed, Poland will be able to access it without having to comply or meet with policy goals.

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Tags: $20bn, credit line, , , , Mexico, Poland

 

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