(MENAFN) The International Monetary Fund's (IMF) first deputy managing director, David Lipton, stated that the fund's Executive Board has endorsed a new 2-year USD33.8 billion loan deal with Poland under the Flexible Credit Line (FCL), reported Xinhua News.
Lipton said that as the renewal of the precautionary loan arrangement, which is equivalent to 22 billion special drawing right (SDR), is for preventive measures only; the Polish side will not use it.
Lipton explained that the IMF's FCL program is provided to nations with very strong fundamentals, policies, and track records of policy achievement and is mainly useful for crisis avoidance purposes.
He noted that Poland has very strong economic fundamentals and policy frameworks, adding that both the sufficient international reserves and the precautionary FCL arrangement helped the country to keep market confidence.
Nevertheless, since early 2012, the country's economic expansion has decelerated, affected by Europe's financial crisis, and it's expected to moderate more during the current year.
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