Third Development Policy Loan

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This is the third policy loan (PL3) in a program of three lending operations supporting Poland's goal of convergence with European Union (EU) living standards. PL3 continues to support the Government's successful policy response to the economic slowdown. Key reform initiatives included the anti-crisis stability and development plan; the reduction in the tax wedge; the phasing out of early retirement pensions; and the amendments of the law on freedom of business operations, the public finance act and the 2009 state budget. Following the second policy loan, PL3 will continue to support Government measures to mitigate the impact of the global crisis on households, workers and businesses. With the recovery gaining speed, it also supports Government efforts to unwind the extraordinary anti-crisis policies and step up reforms to reinforce Poland's growth prospects.