Poland and World Bank agree end to development loans

{"text":[[{"start":7.45,"text":"Poland is on track to graduate from the World Bank’s main development loans programme, marking a new milestone in the transformation of central and eastern Europe’s largest economy."}],[{"start":18.2,"text":"The World Bank’s board approved on Tuesday a new country partnership framework for Poland that runs until 2031 and is set to end regular lending to the EU member state at the end of this period. "}],[{"start":31.4,"text":"The move comes as Poland cements its place among the EU’s strongest economies, with growth this year expected to be three times stronger than the bloc average. Poland’s unemployment rate is also among the lowest in the EU."}],[{"start":45.7,"text":"After growing by 3.6 per cent last year, Poland’s economy is projected to expand by 3.5 per cent in 2026, the second-fastest pace in the EU after Malta’s 3.7 per cent, according to European Commission forecasts published last month. The EU economy as a whole is expected to expand this year by 1.1 per cent."}],[{"start":null,"text":"

"}],[{"start":66.9,"text":"Poland’s real GDP has more than tripled since 1990, when the collapse of its communist regime paved the way for a return to a market economy. The country’s convergence with western Europe was accelerated by foreign investment and significant money transfers from the EU after Poland joined the bloc in 2004."}],[{"start":87.05000000000001,"text":"Finance minister Andrzej Domański told the FT that the World Bank played a “big role” in helping Poland’s transformation, but that “no further borrowing is expected [after 2031], barring unforeseen circumstances”. "}],[{"start":101.10000000000001,"text":"“Few countries have done what Poland has achieved,” said Anna Bjerde, World Bank managing director for operations. “Private investment will be central to the country’s next chapter . . . Just as importantly, we will work with Poland to share the lessons of its remarkable transformation with countries pursuing similar ambitions.” "}],[{"start":120.35000000000001,"text":"Since 1990, the International Bank for Reconstruction and Development, the lending arm of the World Bank, has provided more than $15bn in financing to Poland. In recent years, however, its lending has been limited largely to environmental projects, in particular flood management and efforts to reduce air pollution. Under the previous partnership framework, Poland received $291.3mn from the IBRD."}],[{"start":147.05,"text":"“The fact that they are now considering us for upgrade reflects my country’s economic advancement” as well as its “resilience” during recent European economic downturns, Domański added."}],[{"start":null,"text":""}],[{"start":158.8,"text":"While Poland remains the largest net recipient of EU funding, its reliance on World Bank financing has steadily declined as it has grown wealthier and gained broader access to international capital markets."}],[{"start":171.85000000000002,"text":"Poland’s anticipated graduation from the bank’s main lending programme would leave Romania, Bulgaria and Croatia as the only EU member states eligible for regular IBRD borrowing. "}],[{"start":183.60000000000002,"text":"South Korea was the last country to graduate from the IBRD, in 2016. The IBRD grants loans to middle-income and creditworthy lower-income countries that normally find it more expensive to get such financing elsewhere. Under Poland’s new five-year partnership framework, the bank is set to continue providing advisory and consultancy services to Warsaw."}],[{"start":207.3,"text":"Poland has also been invited by the administration of US President Donald Trump to attend the next G20 meeting as an observer when leaders gather in Miami in December."}],[{"start":217.70000000000002,"text":"The country’s economic progress is also drawing attention from global index providers. This month, S&P Dow Jones Indices placed Poland on a watchlist for a potential reclassification from emerging to developed market status."}],[{"start":231.70000000000002,"text":"A potential upgrade would be another step towards “recognising the strength of the Polish economy and the growing maturity of our capital market”, said Tomasz Bardziłowski, president of the Warsaw Stock Exchange."}],[{"start":250.35000000000002,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1781666774_9817.mp3"}