1. This note assesses the impact of the proposed Flexible Credit Line (FCL) arrangement for Poland on the Fund’s finances and liquidity position, in accordance with the policy on the FCL.1 The proposed arrangement would cover a 12-month period, be in an amount of SDR 13.69 billion (1,000 percent of quota), and succeed the FCL arrangement of an identical amount that expired on May 5, 2010. The full amount of access proposed would be available throughout the arrangement period, in one or multiple purchases.2 The authorities intend to treat the arrangement as precautionary.
See GRA Lending Toolkit and Conditionality—Reform Proposals (SM/09/69, 3/13/09), GRA Lending Toolkit and Conditionality—Reform Proposals (SM/09/69, Sup. 2, 3/24/09), and Flexible Credit Line (FCL) Arrangements, Decision No.14283-(09/29), adopted March 24, 2009.
If the full amount is not drawn in the first six months of the arrangement, subsequent purchases are subject to a review of Poland’s continued qualification for the FCL arrangement.
See Republic of Poland—Assessment of the Impact of the Proposed Flexible Credit Line Arrangement on the Fund’s Finances and Liquidity Position (EBS/09/57, Sup. 1, 04/28/2009).
A more detailed description of external and public debt is provided in the staff report.
The largest GRA credit exposure has been SDR 23.359 billion to Brazil in 2003.
The figures on debt service used in this report are calculated assuming that full amount available under the arrangement is purchased upon approval of the arrangement, and that all repurchases are made as scheduled.
The FCC has been greatly bolstered by the supplementary resources available under the bilateral borrowing and note purchase agreements.