First Development Policy Loan

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This is the first in a proposed series of two development policy loans supporting Poland's goal of strengthening public finances. This first loan in a programmatic series of two development policy loans (DPLs) aims to strengthen Poland's public finances. Sound macroeconomic policies coupled with limited external imbalances helped Poland maintain economic growth during the 2008-09 global downturns. At the request of the Polish authorities, the DPL series is designed to support this Government's objective. The DPL support is focused on three critical policy areas. First, fiscal consolidation is needed to rein in public debt and enhance the country's resilience to external shocks. Second, stronger fiscal institutions are essential to ensure that once the fiscal deficit has come down, it remains at prudent levels over the business cycle. And third, structural and fiscal reforms are required to secure long-term sustainability of social spending, particularly in the face of the country's aging population.