HTTP://WWW.STOPNATO.ORG.UK ---------------------------
<<<<According to a union leader, the closures violated a central bank agreement with unions and caught conservative nationalist president Kostunica by surprise.>>> We will be hearing this line until Kingdom Come... On 4 Jan 02, at 14:39, Barry Stoller wrote: > HTTP://WWW.STOPNATO.ORG.UK > --------------------------- > > > > AFP. 4 January 2002. Serbia's bank closures signal break with Milosevic. > > BELGRADE -- A move by reformers in the ruling coalition here to shut > down four of Serbia's largest banks signals a desire to break with the > financial policies of the Milosevic. > > The shutdowns of the failing banks announced Thursday by a trio of > popular economists carry a heavy social price of 8,500 layoffs. It marks > one of the biggest risks taken by the reformers who came to power after > the ouster of Milosevic in October 2000. > > According to a union leader, the closures violated a central bank > agreement with unions and caught conservative nationalist president > Kostunica by surprise. > > With the liquidation of the four banks -- Beobanka, Beogradska banka, > Investbanka and Jugobanka -- 8,500 jobs will be lost, adding to the > official 840,000 unemployed in Serbia. > Another 500,000 workers are technically unemployed in the 1.9 million > strong workforce. > > Under the plan, bank customers will be able to recuperate their savings > at the post office savings bank and businesses will be compensated by > the Serb state on a case-by-case basis. > > The closures threaten the survival of more than 650 other businesses, > according to Milan Alimpijevic, president of the banking unions. > > The labor issue is a political powderkeg. All reforms tried by previous > governments have collapsed on the issue of high job losses. > > Labus estimated the four banks had amassed non-guaranteed private debt > of 3.5 billion marks (1.75 billion euros) in the past decade. > > Between January and November 2001, the banks had a real loss of 50 > million marks (25 million euros). > > Their creditors, mainly foreigners, had filed lawsuits and the court > rulings had become effective, Labus explained. > > Under the circumstances, "the only solution was bankruptcy," he said. > > Djelic said the decision to liquidate the banks had been taken by > consensus with the central bank and the governments of Serbia and > Yugoslavia, with the consultation of the International Monetary Fund, > the World Bank and the European Union. > > Last month Yugoslavia and the World Bank reached an accord to > restructure Belgrade's 1.9-billion-dollar debt. > > The World Bank has approved a 70-million-dollar loan for Yugoslavia -- > which became a member of the bank May 8 -- to help rebuild the country's > ruined economy [ruined, of course, by NATO]. > > Finance minister Djelic said four new financial institutions would be > created and a social plan would allow laid-off employees to leave with > 24 months' pay. > > The closure announcement prompted an immediate outcry from unions and > appeared to arouse a harder line from the Yugoslav leadership. > > Hundreds of workers at the four banks staged sit-in protest > demonstrations in their offices in the Serbian capital and other cities. > They threatened to continue the protest until January 31, demanding a > moratorium on the decision. > > President Vojislav Kostunica, meeting with a delegation of banking > sector unions, expressed "surprise" at the decision and planned to meet > with central bank chief Dinkic and finance minister Djelic, according to > banking union chief Alimpijevic. > > The unions had told Kostunica the central bank had dealt a "severe blow" > and had "violated agreements" with them, according to a statement by the > president's office. > > Dinkic said on radio B92 that he would respond to an invitation by > Kostunica but that he believed the meeting would change nothing. > > "The process of liquidation cannot be suspended." > > Serbia and its junior partner Montenegro are all that is left of > Yugoslavia since it collapsed into five independent states in the early > 1990s. > > > . . . . . . . . . . . . . . . . . . . . . . . > > Barry Stoller > http://groups.yahoo.com/group/ProletarianNews > > ==^================================================================ This email was sent to: [email protected] EASY UNSUBSCRIBE click here: http://topica.com/u/?a84x2u.a9WB2D Or send an email to: [EMAIL PROTECTED] T O P I C A -- Register now to manage your mail! http://www.topica.com/partner/tag02/register ==^================================================================
