Today, the IMF issued a release regarding Poland’s Prime Minister Donald Tusk’s announcement in Warsaw “that the country was interested in a one-year precautionary arrangement under the IMF’s Flexible Credit Line (FCL) for $20.5 billion.” The FLC is a new credit line, announced in March, under which the IMF will “provide large and upfront financing to members with very strong fundamentals and policies,” in addition to long term repayment terms ranging from 3¼ to 5 years and unrestricted renewals.

IMF Managing Director Dominique Strauss-Kahn welcomed Prime Minister Tuck’s announcement, stating that “Poland has a sustained record of sound economic policies.” He also noted that Poland’s “economic fundamentals and policy framework are strong, and [that] the Polish authorities have demonstrated a commitment to maintaining this solid record.” Mr. Strauss-Kahn indicated that he “intend[ed] to move ahead rapidly in seeking approval by the Fund’s Executive Board of Poland’s request for an FCL arrangement.” Poland is the second country to request a precautionary credit line from the IMF. Also under consideration by the Fund’s Executive Board “is a request from Mexico for a precautionary credit line of $47 billion.”