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DATE=10/11/2000

TYPE=CORRESPONDENT REPORT

TITLE=World Bank Yugoslavia (LO)

NUMBER=2-267789

BYLINE=BARRY WOOD

DATELINE=WASHINGTON

INTERNET=YES

CONTENT=

VOICED AT:

INTRO: The World Bank, the Washington based development institution owned by its over 180 member governments, Wednesday welcomed the peaceful transition in Yugoslavia and said it is willing to provide immediate technical assistance. V-O-A's Barry Wood reports

TEXT: The Bank's board of directors say they will respond positively to any request from the new Yugoslav government. At present there is no government in Belgrade but one is expected to be formed in the next few days. Economists advising President Vojislav Kostunica say the new government will ask that a World Bank mission come to Yugoslavia for consultation, something the Bank is explicitly offering to do.

But while the World Bank can offer advice it can not provide money until several important obstacles are removed. First, Yugoslavia has to rejoin the International Monetary Fund, something Mr. Kostunica's advisors hope can happen as early as mid-December. Second, it must re-apply for membership to the bank and arrange payment of one point seven billion dollars in arrears it owes the World Bank from loans made a decade ago.

In Belgrade (Wednesday) the German head of the European Union's Stability Pact for the Balkans spoke of the possibility of fast dispersing aid being made available to the new government. He also spoke of moving quickly on rebuilding bridges that have blocked shipping on the Danube river, one of three critical transit routes that pass through Serbia and connect Central Europe with the Balkans and Black Sea region.

John Lampe, a Yugoslav specialist and professor of history at the University of Maryland, applauds the World Bank's quick response to the democratic transition in Serbia. Mr. Lampe says the nearly three billion dollars being made available to the Balkans through the Stability Pact should be augmented to include reconstruction aid for Serbia.

//Lampe act//

And also, Serbia's neighbors should realize that they are going to get a dividend from legal movements and infrastructure repaid across Serbia. Also foreign investors are going to look at Bulgaria, Macedonia and Albania more favorably because of the opening of Serbia because of the legal transactions and traffic. This would also include Greek and Turkish investment. There may be some potential for mobilizing private Greek and Turkish investment.

//end act//

Any World Bank mission that might be visiting Belgrade in the next few weeks would be preparing a needs assessment and working with other aid providers on a comprehensive support strategy. The bank says it willing to explore administering a donor trust fund as a way of providing financial aid in advance of Yugoslavia obtaining World Bank membership.(signed)

NEB/BDW/PT