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Yugoslavia Joins World Bank
The World Bank announced Tuesday that the Federal Republic of Yugoslavia (FRY) has fulfilled the necessary conditions to succeed to the membership of the former Socialist Federal Republic of Yugoslavia in the World Bank.
"With membership in place, the bank will be able to support FRY 's economic development through a Transitional Support Strategy, also discussed today, that sets out a program for FY02 (which begins July 1, 2001)," the World Bank said in a statement.
The World Bank is also working to prepare a comprehensive Emergency Recovery and Transition Program for FRY. This is currently being finalized with the government for presentation to donors at a pledging conference tentatively planned for June 2001.
As part of the membership package, the World Bank also approved a plan for clearing FRY's arrears to the International Bank for Reconstruction and Development (IBRD), and temporary exceptional eligibility at the International Development Association (IDA). Both IBRD and IDA are members of the World Bank.
Though membership has been established, it is likely to take several additional months to actually resolve FRY's arrears to IBRD, which currently total about 1.7 billion U.S. dollars. New World Bank financing is thus likely to become available in the first part of FY02. Up to 540 million dollars in IDA lending could now be made available over a three-year period.
For near-term assistance, the World Bank set up a trust fund of 30 million dollars for FRY in March, 2001.
FRY was formed in 1992 out of the Republics of Serbia and Montenegro as the former Socialist Federal Republic of Yugoslavia was breaking up in civil conflict.
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