World Bank Lending Poland $3.75 Billion For Reforms.

"The World Bank is lending Poland a total of $3.75 billion, in three tranches, to help the country finance its structural reforms, the bank said in a statement Monday. Last December, the World Bank and Poland signed an agreement on the first tranche of the Development Policy Loan, and the parties are in talks on details for tranches two and three, said World Bank spokeswoman Anna Kowalczyk. 'We expect to pay out the second tranche this year,' she added...." [Dow Jones/Factiva]

Polish News Bulletin adds that "...during his visit to Warsaw, World Bank President Robert Zoellick...met with Polish central bank (NBP) head Slawomir Skrzypek and Finance Minister Jacek Rostowski. 'We discussed loans which would not be granted directly to the government, but the government would issue guarantees for them. One particularly important such initiative would be an around $500 million loan for PKO BP, the aim of which would be to enhance the development of small and medium businesses,' he said...." [Polish News Bulletin/Factiva]

In related news, FT writes that "...Poland's external financing needs are much smaller than previously thought, according to a new study by the country's central bank .... In a report released on Monday, the central bank concluded that external debt due this year comes to $86.6 billion.... Zoellick said, 'The most recent numbers show that Poland has held up better than others, in part because of consumer spending.'..." [Financial Times/Factiva]

IMF Approves $2.8 Billion Loan To Crisis-Hit Ukraine.

"The International Monetary Fund (IMF) on Friday approved a long-delayed $2.8 billion loan for crisis-stricken Ukraine, citing signs of growing political stability and more promising economic policies. The impact of the global financial crisis on Ukraine has been compounded by its turbulent political climate, but the IMF said there have been indications of improvement...." [Associated Press (5/8)/Factiva]

AFP adds that "...the approval was given by the IMF's executive board on completion of the first review of Ukraine's economic performance under a two-year stand-by credit arrangement totaling $16.5 billion approved in November 2008. The latest loan raised the total Fund disbursements to Ukraine so far to $7.3 billion, the IMF said in a statement...." [Agence France Presse (5/8)/Factiva]

Reuters reports that "...the IMF board waived a number of previously held conditions, allowing authorities to continue with exchange rate restrictions, multiple currency practices and the imposition of import restrictions. It has allowed for a budget deficit of 4 percent of gross domestic product, against an initial demand for a balanced budget. Differences over the budget deficit first stalled the loan program in February...." [Reuters (5/8)/Factiva]

Romania in line to receive EUR20 billion IMF package.

Romania could receive about €20bn in an International Monetary Fund-led (IMF) rescue package as the result of negotiations between Bucharest and the IMF due to resume tomorrow.

The multilateral support package, aimed at averting an economic crisis in one of the European Union's poorest member states, is likely to be similar in size to the €20 billion made available to Hungary in November, according to an official familiar with the issue.

A delegation from the IMF will arrive in Romania on Wednesday for a two-week visit to discuss a possible loan to the crisis-hit country, the IMF said.

'"The program would be part of a pro-active, insurance-based multilateral financing package to be supported by the EU and the World Bank, among other international financial institutions," it added.

Romania will also ask the EU for financial help to balance its budget this year, the EU's top economy official said on Monday. EU Economic and Monetary Affairs Commissioner Joaquin Almunia would not estimate how much Romania might need. The EU's 27 nations have up to €25 billion to lend to member states in trouble that don't use the euro currency. The bloc has already spent €9.6 billion bailing out Hungary and Latvia.