The International Monetary Fund (IMF) has extended a two year $30 billion (£19 billion) credit line to Poland. The new deal substitutes the one year arrangement agreed previously in July 2010.
The IMF said in a statement that Poland considers the new facility as “precautionary and does not intend to draw (on the funds)”.
The IMF said although the Polish economy is gathering steam, “sizeable downside risks remain” in 2011. Poland faces the domino effect of “financial turbulence” caused by its neighbours and other EU countries.
Poland is one of the few countries in Europe which has not witnessed economic slowdown in the last two years and the IMF expects the country’s economy “to remain solid and balanced” in future.
However, the newly sanctioned credit line is expected to act as a shock absorber and would “insure Poland against external risks”.
The IMF had sanctioned Poland a $21 billion credit line last year.