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Yugo hopes for US backing in debt talks-minister
  
BELGRADE, Aug 4 (Reuters) - Yugoslavia said on Saturday it hoped the United 
States would help it reach an international debt settlement and return it to 
most favoured nation status. 

Yugoslavia's Foreign Minister Goran Svilanovic told reporters he was "very 
pleased" with talks he, Yugoslav Deputy Prime Minister Miroljub Labus and 
Serbia's Finance Minister Bozidar Djelic had during three-day visit to 
Washington. 

"I'm very encouraged by support I expect from the United States ahead of the 
talks scheduled for autumn," Svilanovic said at Belgrade airport upon his 
return. 

He referred to the talks with Paris Club, and subsequent discussions with the 
London Club of commercial bank creditors, both to begin in September. 

Yugoslavia's total foreign debt is around $12.2 billion. Its debt to the 
Paris Club is estimated at some $4,4 billion and to the London Club at $2.8 
billions. 

Belgrade has indicated it would seek a 67 percent debt write-off from the 
Paris Club and at least as much from the London Club. 

"I expect the European governments to show an equal level of understanding 
(in debts talks) we have met in the States," Svilanovic said, adding that the 
lion's share of Yugoslavia's debt is to Great Britain, France and the United 
States. 

Svilanovic, one of the DOS reformist leaders, who ousted former President 
Slobodan Milosevic, currently awaiting trial on war crimes charges before a 
U.N. war crimes court, said the Yugoslav delegation had meetings with all 
U.S. officials related to the debt issue, including Secretary of State Colin 
Powell. 

"We also agreed that already in September we'll normalise trade relations 
between Yugoslavia and America and then we'll start talking on getting most 
favoured nation status," said Svilanovic. 

Yugoslavia enjoyed that status for decades but it was abolished when an 
international trade embargo was imposed on the country for its role in wars 
in 1990s, during the violent break-up of the former Balkan federation. 

Last month, the U.S. government's Overseas Private Investment Corporation 
signed a deal to boost private U.S. investment in Yugoslavia and support its 
economic reforms. 

10:16 08-04-01

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