Statement by Deputy Press Secretary Popadiuk on Economic Assistance to Poland

The President announced today U.S. participation in a short-term bridge loan for Poland. The Department of the Treasury will be providing such financing as part of the multilateral arrangement now under discussion, which is expected to total up to $500 million. The U.S. share is expected to be up to $200 million.

United States participation in this arrangement reflects support for Poland's economic reform program designed to restore sustained growth. Provision of the short-term bridge financing would be contingent upon Poland's agreement to an International Monetary Fund program which would enable Poland to qualify for IMF financing. The bridge loan would be repaid from disbursements under this IMF program and under anticipated loans from the World Bank.

The short-term bridge loan is distinct from a $1 billion multilateral stabilization fund which is being established on behalf of Poland. This fund is to be established to support a new exchange rate policy which is part of Poland's overall economic reform program. The stabilization fund will also serve to complement the IMF program. The U.S. contribution to the stabilization fund would be $200 million, in the form of a grant. Efforts to secure participation of other countries are nearing completion, and preparatory work on the fund is underway.