From: Rick Rozoff <[EMAIL PROTECTED]> [The World Bank proposes, NATO disposes: "The bank confirmed that in March 2001, it set up a $30 million trust fund for Yugoslavia for near-term assistance....But the United States, which has significant influence over the purse strings of institutions like the World Bank and IMF, has threatened to withdraw backing of the conference if Belgrade does not cooperate wth an international court in the Hague that wants to try Milosevic for alleged war crimes."] World Bank Re-admits Yugoslavia After Eight Years WASHINGTON, May 9, 2001 -- (Reuters) Yugoslavia rejoined the World Bank on Tuesday, eight years after being expelled for its involvement in Balkan wars, paving the way for future loans to help the impoverished country's economic recovery. "The government of the Federal Republic of Yugoslavia has fully satisfied the requirements for Bank membership," said World Bank Director Christiaan Poortman. "We look forward to working together on reviving the country's economy and improving living conditions for all the people of Yugoslavia." Yugoslavia was cut off by the International Monetary Fund in 1992 and the World Bank in 1993. It rejoined the IMF in December 2000, two months after former leader Slobodan Milosevic was ousted. As part of the membership package, the World Bank's executive board approved temporary eligibility to the International Development Association (IDA).The bank said that up to $540 million in IDA lending could now be made available over a three-year period. IDA is a World Bank's arm that lends to poor states whose lack of credit-worthiness precludes borrowing on market terms. In return, the borrower must implement policies that promote economic growth and reduce poverty. The board-approved package also included a plan for clearing the country's arrears to the Washington lender. But it would take "several additional months" to actually resolve the $1.7 billion arrears, the bank said. Yugoslavia's Deputy Prime Minister Miroljub Labus, speaking at the end of April ahead of the expected announcement, said these two components of the package should give Yugoslavia a net capital inflow of between $30 and $50 million a year. The bank confirmed that in March 2001, it set up a $30 million trust fund for Yugoslavia for near-term assistance. This is designed to help the country improve economic conditions in the short run and to help the government to shape its longer-term policy agenda. The bank said it will now be able to support Yugoslavia's economic development through a Transitional Support Strategy which will set out a program for the fiscal year 2002. With a planned donor conference in sight, the lending institution said it is putting together a comprehensive Emergency Recovery and Transition Program. This is still being worked on with the government but should be ready for the tentatively planned June 1 conference in Brussels. The first step toward this conference came at the end of April, when the IMF agreed a memorandum on economic and financial policies. Officials are hoping to raise $1.2 billion at the event which will be sponsored by the World Bank and the European Commission. But the United States, which has significant influence over the purse strings of institutions such as the IMF and the World Bank, has threatened to withdraw backing of the conference if Belgrade does not cooperate with an international court in The Hague that wants to try Milosevic for alleged war crimes. Two U.S. senators from the Foreign Operations Subcommittee, Patrick Leahy (D-VT) and Mitch McConnell (R-KY), have written to World Bank President James Wolfensohn, urging him to ensure that cooperation with the international court be a condition of lending. U.S. Secretary of State Colin Powell met on Tuesday with the chief prosecutor of the court. They were expected to discuss putting more pressure on Belgrade to transfer Milosevic to court. The country's improved relations with the outside world have already led to promises of new financing. Subject to the resolution of some problems with the Yugoslav budget, the IMF has pledged a $260 million stand-by loan. An IMF agreement also opens the doors for negotiations with the Paris Club of creditors on debt restructuring. Yugoslavia has requested a write-down of around two-thirds of a total $5.0 billion debt owed to Paris Club members. _________________________________________________ KOMINFORM P.O. Box 66 00841 Helsinki Phone +358-40-7177941 Fax +358-9-7591081 http://www.kominf.pp.fi General class struggle news: [EMAIL PROTECTED] subscribe mails to: [EMAIL PROTECTED] Geopolitical news: [EMAIL PROTECTED] subscribe: [EMAIL PROTECTED] __________________________________________________
