(Adds comment from IMF official, credit line details)
By David Lawder
WASHINGTON Jan 13 The International Monetary
Fund said on Friday its executive board approved a new two-year
flexible credit line arrangement for Poland worth about 8.24
billion euros, about half the size of the country's previous
The IMF said the arrangement is expected to be treated by
Polish authorities as precautionary, with no plans draw upon it.
"Poland continues to benefit from very strong economic
fundamentals and policy frameworks," IMF Deputy Managing
Director Mitsuhiro Furasawa said in a statement. "Economic
growth remains robust, unemployment continues to decline, and
deflation has dissipated."
Despite the Polish economy's strengths, the Furusawa said
that external risks remain elevated, including potential
spillovers from slower euro-area growth, stress in the European
banking sector and looming negotiations for Britain's exit from
the European Union.
"A faster-than-expected pace of monetary policy
normalization in the United States and bouts of financial market
volatility could affect Poland's economy, given its sizable
external financing needs," Furusawa added.
The flexible credit line is intended as insurance against
such external shocks, the IMF said, supplementing Poland's
flexible exchange rate and strong reserve buffers.
The IMF first established Poland's flexible credit line in
2009 during the financial crisis. The latest arrangement is
equal to about 159 percent of Poland's quota, or share in the
(Reporting by David Lawder; Editing by Chizu Nomiyama and