Military

DATE=10/31/00

TYPE=CORRESPONDENT REPORT

TITLE=YUGOSLAVIA / I-M-F (L ONLY)

NUMBER=2-268673

BYLINE=BARRY WOOD

DATELINE=WASHINGTON

INTERNET=YES

CONTENT=

VOICED AT:

INTRO: Progress is being made in Yugoslavia's efforts to rejoin the International Monetary Fund, which is an essential first step for post-Milosevic Serbia obtaining needed reconstruction loans. V-O-A's Barry Wood reports that an I-M-F mission has just concluded a visit to Belgrade.

TEXT: I-M-F specialists spent six days (Oct 24-30) in Yugoslavia examining the country's financial situation and meeting with officials at the central bank and with advisors to President Vojislav Kostunica. Yugoslavia has accepted the conditions for rejoining the I-M-F, from which it was expelled in 1992. Before its membership can be reactivated, Belgrade has to clear its unpaid debt of about 130-million dollars to the I-M-F. Norway and other nations are considering a short-term bridge loan to Belgrade for that purpose.

I-M-F spokesman Tom Dawson says once there is an agreement on debt repayment another I-M-F mission will travel to Belgrade.

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Then the final condition for membership is a finding by the executive board that the Federal Republic of Yugoslavia is able to fulfill its obligations under the articles of agreement. That is the last stage, the board assessment.

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Mr. Dawson says there is no timetable for when that assessment would occur. But Yugoslav officials say they still hope that I-M-F membership can take place by mid-December. Yugoslavia cannot borrow from any international lender - including the World Bank or the European Bank for Reconstruction and Development (E-B-R-D) - until it is an I-M-F member. The other multi-lateral lenders have been in Belgrade during the past ten days. All indicate that they are eager to provide loans and assistance for reconstruction.

One of the technicalities is that Yugoslavia must have a federal government in place before it can sign international agreements. Officials say they hope a federal government will be formed by November Third. (Signed)

NEB/BDW/JWH