Poland Reform Plan Due Soon, IMF Chief Says

The head of the International Monetary Fund said Monday that he expected Poland to complete a “courageous” economic reform plan this week, opening the door for massive financial aid from the West.

IMF managing director Michel Camdessus declined to detail the Polish austerity plan but said he would enthusiastically recommend its acceptance by the IMF and Western institutions.

He also said the IMF would undertake a debt-reduction program for Poland after 1990 similar to those being negotiated with some Latin American countries.

“It is my hope that the letter of intent will be ready and adopted possibly at the end of this week,” Camdessus told reporters after two days of talks with Polish leaders.

Camdessus said his approval of the Polish government’s letter of intent--a blueprint for harsh economic austerity and sweeping reform--would trigger Western aid for Poland’s battle against 450% inflation and for its plans to switch to capitalist-style economics.

The aid would include an IMF standby loan, a bridge loan from the Bank for International Settlements, World Bank restructuring loans, debt rescheduling by the Paris Club of creditor nations and the London Club of commercial bank creditors and a $1-billion stabilization loan by 24 Western nations.

Separately, three organizations intent on helping Poland enhance its 1990 harvest urged U.S. agriculture businesses to donate desperately needed machinery, chemicals, feed and animal pharmaceuticals.

The donations are necessary because of a “gap in the U.S. legislative package” that provided $533 million in assistance to Poland and Hungary, said Josiah Lee Auspitz, secretary of the Sabre Foundation.