Poland to ask IMF for access to credit line

Poland will be the second country after Mexico to take advantage of the International Monetary Fund's flexible credit line, Finance Minister Jacek Rostowski said on Tuesday.

"Poland's government will soon file to the International Monetary Fund for the flexible credit line," Rostowski told a news conference.

"This will increase national bank reserves by about a third, or about $20 billion," he said.

The Polish zloty and bonds showed little immediate reaction to the announcement.

"This is good news for investors because it gives the finance ministry a safety buffer in terms of financing," said Marta Petka-Zagajewska, economist at Raiffeisen in Warsaw.

Poland is in relatively comfortable shape compared to the region's other emerging economies, such as Hungary, Latvia and Romania — which all received outside funds — and has previously been reluctant to flag any need for additional funding.

But Poland, whose underlying fundamentals analysts view as much stronger, has also suffered from an evaporation of capital due the credit crunch and worries over the region's growth and financing.

The boost to IMF funds agreed at last week's meeting of G20 leaders is also aimed at addressing any shortfall on the capital needed to bolster growth and confidence in the region's emerging markets.