Warsaw withdraws IMF’s credit line FCL

Warsaw will withdraw from the International Monetary Fund’s precautionary Flexible Credit Line (FCL) worth billions of dollars, according to the country’s finance ministry.

“We are resigning from a $9.2 billion credit line from the IMF. The Polish economy is in such a good situation that we can do it,” the ministry quoted Finance Minister Mateusz Morawiecki on Twitter.

The country’s budget posted a record surplus of $1.36 billion for the period from January to August as a result of a steep rise in revenue from value-added tax. Economic growth was almost four percent.

“I have taken the decision to quit the FCL after an analysis of tax data, macroeconomic parameters, assessment of our budget stability and currency reserves,” Morawiecki was cited as saying.In January, the Executive Board of the IMF approved a two-year arrangement for Poland worth about €8.2 billion at that time.

The fund said the credit line would “provide valuable insurance against external shocks.”

“A possible growth slowdown and banking sector stress in the euro area could have significant spillovers via trade, financial, and confidence channels,” said the IMF

: Rezygnujemy z $9,2mld linii kredytowej Polska gospodarka jest w tak dobrej sytuacji, że możemy to zrobić.

Translate from Polish

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s