Moody's: IMF's renewed FCL mitigates Poland's external vulnerabilities.

By bne IntelliNews January 25, 2013
The International Monetary Fund's (IMF) decision to extend the flexible credit line (FCL) for Poland grants the country continued unconditional access to funds in the event of a balance of payments shock, providing additional support its external finances, according to Moody's Investor Services (who rates Poland "A2" with stable outlook). The new two-year credit line will support Poland's overall macroeconomic strategy by providing a cushion against balance of payments risks, an area in which the economy exhibits some vulnerabilities given that its external finances are weak compared to other "A"-category peers, the agency argued. The FCL was granted in an amount equivalent to SDR 22bn (about USD 33.8bn, or 1,303% of quota), up from SDR 19.2bn (about USD 30bn or 1400% of quota at the time of approval) in the agreement that ends in January of 2013.

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