Annex A
UK ASSISTANCE
The UK is supporting economic reform and recovery
in Yugoslavia in the following ways:
— DfID's bilateral technical assistance
programme: following discussions with the Federal and Serbian
governments in Yugoslavia last week DfID is pursuing bilateral
support in a number of areas such as macro-economic reform, privatisation,
public administration reform, health care reform, banking, and
legislation on telecommunications. DfID is in close contact with
the international financial institutions such as the World Bank
and the IMF.
— Through UK support and financing
for the EU's programme of assistance and trade measures: these
include an emergency aid package of 200m euro announced in October
(dispersal already underway), Asymmetric Trade Measures (ATMs)
extended to the whole FRY (previously only Kosovo and Montenegro)
at the October General Affairs Council, and the new 4.65bn euro
aid programme for the region—CARDS—from which Yugoslavia
will benefit (country strategy now being prepared).
— Through UK Support of the IMF's structural
adjustment programme: the IMF and Yugoslav government currently
negotiating a structural adjustment programme. This is most likely
to be a Stand By Agreement (SBA) designed to help plug the finance
gap of some 1.5% of GDP that the FRY government has identified.
— EBRD lending: FRY joined the EBRD
on 15 December with support from the UK. The EBRD have begun initial
engagement with the FRY government. The Bank's priority areas
for investment are local creditworthy banks. Export orientated
enterprises undergoing privatisation, infrastructure, municipal
water and environmental projects, and projects that mobilise financial
sector reform.
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