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Poland to seek $20.5 bln credit line from IMF

Poland will ask the International Monetary Fund for a $20.5 billion special credit line to help it tackle the global financial crisis.

“The additional funds will strengthen the Polish economy against the crisis virus and speculative attacks. They will protect us from uncontrolled depreciation of the zloty,” declared Finance Minister Jacek Rostowski.

He added that the additional funding will not be used to increase the state budget but will increase National Bank of Poland (NBP) reserves by a third from the current €41.4 billion.

The funds will also help lower the cost of servicing foreign debt. PM Donald Tusk and Finance Minister Rostowski told a press conference that the special credit line had only been offered to a limited number of countries.

“The IMF only offers these flexible loans to countries with strong economic foundations, Poland is regarded by the IMF as a pillar of stability in the region,” Rostowski declared. Investors reacted positively to the news, with the euro exchange rate falling from PLN 4.36 to PLN 4.23. (Warsaw Business Journal)