From Détente to Debt: UK–Polish political and economic relations during the development of the Polish debt crisis (1970–1981)

Lefevre, C. (2024) From Détente to Debt: UK–Polish political and economic relations during the development of the Polish debt crisis (1970–1981). International History Review, (doi: 10.1080/07075332.2024.2304007) (Early Online Publication)

Abstract

Previous studies on the Polish sovereign debt crisis (SDC) have not examined the UK’s position as a creditor country, nor the influence of ministerial visits and non-state/non-financial actors in the Polish SDC. Furthermore, the literature on credit agencies in the development of this crisis is limited and does not cover the UK. Through archival research, this article examines UK–Polish relations from 1970 to 1981, illustrating how UK foreign policy fostered the development of these relations and influenced UK lending to Poland. This was achieved through ministerial visits and export credit guarantees (ECGs) granted through the UK’s credit agency (ECGD) to encourage UK firms to do business in Poland. The article demonstrates that the UK was the largest user of ECGs among the main creditors to Poland and nearly half of Polish debt constituted guaranteed loans. It also illustrates the importance of Polish non-state/non-financial actors in the development of the Polish SDC, and how the UK supported their role as counter-authorities to the socialist system. It finds that lending from creditors continued after Poland requested debt rescheduling partly to support these actors. In doing so, the article contributes to a more comprehensive picture of the Central and Eastern European SDC.

• Item Type: Articles
• Additional Information: This work was supported by European University Institute.
• Status: Early Online Publication
• Refereed: Yes
• Glasgow Author(s) Enlighten ID: Lefevre, Dr Catherine
• Authors: Lefevre, C.
• College/School: College of Social Sciences > School of Social and Political Sciences > Economic and Social History
• Journal Name: International History Review
• Publisher: Taylor & Francis
• ISSN: 0707-5332
• ISSN (Online): 1949-6540
• Published Online: 22 January 2024
• Copyright Holders: Copyright © 2024 The author(s)
• First Published: First published in International History Review 2024
• Publisher Policy: Reproduced under a Creative Commons licence