IMF agrees to up Polands FCL to USD 29bn from USD 21bn.

By bne IntelliNews December 24, 2010
The executive board of the International Monetary Fund (IMF) has informally approved of Poland's motion to prolong the use of its flexible credit line. As a result, the amount available to Poland will rise from around USD 21bn (1000% of quota) to around USD 29bn (1400% of quota), while its availability will be prolonged from one year to two years, the finance ministry has said in a communiqu. Raising the amount results from changes to the FCL's facility that are in place as of August, it added. At the same time, the ministry stresses that - as in the case of the previous two lines - it does not intend to use the available resources, but views them as a safeguard against external economic risks. In June, finance minister Jacek Rostowski said that Poland had applied for the FCL at 1000% of quota, which would stand - at the then FX rates - at around USD 20.1bn. Under the agreement between the ministry and the National Bank of Poland (NBP), the FCL's maintenance costs - at that time estimated at USD 60mn - would be covered by the finance ministry. ISB

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