Poland granted $20B IMF credit

The International Monetary Fund has approved a $20 billion credit to Poland in a bid to increase confidence in the country’s economy, an IMF executive said.

John Lipsky, head of the IMF, said the fund’s executive board believes that the flexible credit line will play a major role in supporting Poland’s economic policy, Polish Radio said Thursday.

The IMF flexible credit line is not a rescue loan granted to troubled economies, but an instrument given to the countries with sound finances, the radio said.

When seeking the credit in mid-April, the Polish government said it is also aimed at increasing the $61 billion central bank reserves by one-third.

Polish Finance Minister Jacek Rostowski said the credit would help protect Poland’s economy from the global financial crisis.