Poland credit: IMF chief Dominique Strauss-Khan says the country has a sound economic history
Both Poland and Mexico sought loans from the IMF last month, using the fund's flexible credit line (FCL), a new instrument designed to bolster strong performing economies against fallout from the current global economic crisis.
The IMF approved a $47bn credit line to Mexico in mid-April while Poland is still seeking a $20.5bn credit line. Under the IMF's conditions, the countries must meet certain criteria that demonstrate sound economic management prior to the loan being dispersed. In contrast to traditional IMF-supported programmes, disbursements are not phased nor conditioned on compliance with policy targets.
"Poland has a sustained record of sound economic policies," Dominique Strauss-Kahn, the IMF's managing director, said in a statement. "Its economic fundamentals and policy framework are strong, and the Polish authorities have demonstrated a commitment to maintaining this solid record." Jacek Rostowski, the Polish finance minister, said the credit line will help make "the Polish economy immune to the virus of the crisis and speculative attacks".
The Mexican government says it is treating the one-year arrangement as a precaution and does not intend to draw on the line.
The FCL forms part of a major overhaul of the IMF's lending framework as it seeks to expand its global role in the wake of the crisis.
Both Poland and Mexico sought loans from the IMF last month, using the fund's flexible credit line (FCL), a new instrument designed to bolster strong performing economies against fallout from the current global economic crisis.
The IMF approved a $47bn credit line to Mexico in mid-April while Poland is still seeking a $20.5bn credit line. Under the IMF's conditions, the countries must meet certain criteria that demonstrate sound economic management prior to the loan being dispersed. In contrast to traditional IMF-supported programmes, disbursements are not phased nor conditioned on compliance with policy targets.
"Poland has a sustained record of sound economic policies," Dominique Strauss-Kahn, the IMF's managing director, said in a statement. "Its economic fundamentals and policy framework are strong, and the Polish authorities have demonstrated a commitment to maintaining this solid record." Jacek Rostowski, the Polish finance minister, said the credit line will help make "the Polish economy immune to the virus of the crisis and speculative attacks".
The Mexican government says it is treating the one-year arrangement as a precaution and does not intend to draw on the line.
The FCL forms part of a major overhaul of the IMF's lending framework as it seeks to expand its global role in the wake of the crisis.
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