Warsaw will withdraw from the International Monetary Fund’s precautionary Flexible Credit Line (FCL) worth billions of dollars, according to the country’s finance ministry.
“We are resigning from a $9.2 billion credit line from the IMF. The Polish economy is in such a good situation that we can do it,” the ministry quoted Finance Minister Mateusz Morawiecki on Twitter.
The country’s budget posted a record surplus of $1.36 billion for the period from January to August as a result of a steep rise in revenue from value-added tax. Economic growth was almost four percent.
“I have taken the decision to quit the FCL after an analysis of tax data, macroeconomic parameters, assessment of our budget stability and currency reserves,” Morawiecki was cited as saying.
In January, the Executive Board of the IMF approved a two-year arrangement for Poland worth about €8.2 billion at that time.
The fund said the credit line would “provide valuable insurance against external shocks.”
“A possible growth slowdown and banking sector stress in the euro area could have significant spillovers via trade, financial, and confidence channels,” said the IMF.
The Flexible Credit Line has been in place for Poland to use at times of crisis since 2009, but the country has never drawn on the funds. Last year Poland asked the IMF to halve the value of the FCL.
The Pols are on the wise side of the sharp curve.
All they need to do is print there own
that’s game, set, match.
Twenty six years ago I needed to borrow $37,000 from the bank. This was the balance needed to purchase a humble abode. The banker smiled and told me I qualified for a loan of $150,000. I said, “No, thank you. And I had to say, “No, thank you” about 5 or 6 more times. I was shown the dangling carrot in all its naked glory which came with offerings and perks: free checking, free notary, 1/4 percent interest benefit, free safe deposit box, etc. I’m surprised I wasn’t offered an evening with Elvis. But again, I politely said, “No, thank you.” Because I was looking behind the dangling carrot, and there, in full array was INDEBTEDNESS!! In other words: “We own your butt.” The banker didn’t like me. Go Poland!!
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Good for you! There Galen, you got the house AND a night with Elvis!!
Oh my. I doubt I’ll ever get over this. But who wants to?
🙂
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