Poland cancels IMF credit line

Poland canceled its two-year precautionary Flexible Credit Line (FCL) with the International Monetary Fund, worth €8.24 billion. The agreement was initially signed in 2009 and later extended numerous times, however, Poland never drawn on the funds and back in 2016 asked the IMF to halve the value of the line. The FCL was established in 2009 as a preventive measure which allows creditors to draw on it at any time. Disbursements are neither phased nor conditioned on compliance with policy targets as in traditional IMF-supported programs. The FCL is available to qualified countries with very strong fundamentals, policies, and track records of policy implementation. The FCL is a renewable credit line, which could be approved for either one or two years. There is no cap on access to Fund resources under the FCL, and access is determined on a case-by-case basis.