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 24-month periodwith access of SDR 19.166 billion (1,400 percent of quota). It would succeed the current FCL arrangement, which would be cancelled prior to approval of the proposed arrangement. The full amount of the proposed access 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 (www.imf.org), GRA Lending Toolkit and Conditionality—Reform Proposals (www.imf.org), Flexible Credit Line (FCL) Arrangements, Decision No.14283-(www.imf.org), adopted March 24, 2009, The Funds Mandate—The Future Financing Role—Revised ReformProposals and Revised Proposed Decisions (www.imf.org), and The Fund’s Mandate—Flexible Credit Line (FCL)Arrangements, Decision No.14714-(www.imf.org), adopted August 30, 2010.
If the full amount is not drawn in the first year of the arrangement, a review of Poland’s continuedqualification under the FCL must be completed before purchases may be made after the first year of thearrangement.
See Republic of Poland—Assessment of the Impact of the Proposed Flexible Credit Line Arrangement on the Fund’s Finances and Liquidity Position (IMF Country Report 09/138, 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 was SDR 23.359 billion to Brazil in 2003. Currently, the largest GRAexposure is to Romania in the amount of SDR 9.8 billion.
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.