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The..agreement also allows a $150 million Southeast
Europe Equity Fund, managed by Soros Private Funds
Management, to start doing business in Yugoslavia.  


Deal Lets U.S. Investors Back Into Yugo  
Saturday July 21, 1:09 PM EDT  
BELGRADE (Reuters) - The U.S. government's Overseas
Private Investment Corporation signed a deal on
Saturday to boost private U.S. investment in
Yugoslavia and support its economic reforms.
The OPIC agreement also allows a $150 million
Southeast Europe Equity Fund, managed by Soros Private
Funds Management, to start doing business in
Yugoslavia.
"Today's agreement not only signals the green light
for the U.S. investors but indeed is a signal to the
entire international investment community that
Yugoslavia is open for business," Peter Watson, OPIC
president and CEO, told reporters.
The pact replaces a previous one signed in 1973 with
the former six-member communist federation. OPIC, a
U.S. government agency facilitating private
investment, has not been active in Yugoslavia since
the break up of the old state in 1991.
The deal comes as discontent with reforms grows and
people fear massive job cuts as the federation of
Serbia and Montenegro struggles to reshape the economy
and woo investors after a decade of sanctions,
isolation and mismanagement under the rule of ousted
leader Slobodan Milosevic.
Dragisa Pesic, Yugoslav outgoing finance minister and
prime minister designate, welcomed the OPIC deal.
"I am happy to have signed the agreement and opened
space for more intensive economic ties between our two
countries. I believe the investment support will help
Yugoslavia's economic development," said Pesic, who
will assume the post next week.
Pesic is a member of Montenegro's opposition Socialist
People's Party (SNP), which quit the last government
in protest at Serbian reformers' decision to hand
former Yugoslav president Slobodan Milosevic over to
the U.N. war crimes tribunal.
But the SNP agreed to form a new cabinet with Serbia's
reformers in return for a new government structure,
with an equal number of ministers from Serbia and
Montenegro so neither side can outvote the other.
"This is a very good time to commit the confidence of
the United States in the reform process that you are
undertaking," Watson said after the signing ceremony.
"This is the beginning and we look very much forward
to working with you and making your reform process a
success," he said.  


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