WASHINGTON, April 17 (Hina) - Money that belonged to the former National Bank of the Socialist Federal Republic of Yugoslavia (SFRY), which is deposited in U.S. banks, is still blocked, a U.S. government official said on
Thursday.
WASHINGTON, April 17 (Hina) - Money that belonged to the former
National Bank of the Socialist Federal Republic of Yugoslavia
(SFRY), which is deposited in U.S. banks, is still blocked, a U.S.
government official said on Thursday. #L#
A total of US$225 million of foreign currency reserves of the former
SFRY National Bank deposited in U.S. investment banks was blocked
upon the disintegration of the former federation as part of
sanctions the United States imposed on the regime of former
Yugoslav President Slobodan Milosevic.
The U.S. government is working on unfreezing the funds, the
spokesman for the Department of Finance, Taylor Griffin, told Hina,
adding he did not know when this could occur because there were
still many issues to be resolved.
Croatia's stance concerning these funds is "that they cannot be
unfrozen until the issue of succession to the former state is not
completely resolved," Croatia's Deputy Finance Minister Damir
Kustrak said.
The five successor countries to the SFRY signed an agreement
regarding succession in Vienna in June 2001, which Croatia did not
ratify because it transpired later that only one-tenth of $695
million envisaged for succession might actually exist.
Croatia has already blocked S$40 million which the U.S. unfroze
last December with the intention of helping reconstruction in
Serbia-Montenegro.
Croatia believes it is entitled to a portion of said $40 million, as
well as of the $225 million deposited by the former SFRY National
Bank. By blocking attempts to unfreeze these funds, Croatia wishes
to urge disclosing where around 90 percent of the hundreds of
millions of dollars ended up.
Croatian diplomatic sources believe, however, that by blocking
these funds, Croatia is taking a certain risk which may not be worth
it in the long run.
Funds owned by the former Yugoslavia were more than likely spent by
Milosevic's regime and it will be difficult for Croatia to find out
where the money ended up. By blocking a smaller amount of funds in
the name of political principles, Croatia is nevertheless
rejecting funds that could be useful.
Croatia is also opposing the U.S. wish to rid itself of funds that do
not belong to it and in that way assist development in this region,
sources said.
Croatia's blockade in December last year was initially supported by
Slovenia, but now Slovenia has said that it wants the funds
available and divided among the successors.
On the other hand, there is a possibility of political risks if
someone in Croatia was to agree with sharing the succession funds
with Serbia-Montenegro after the aggression the Milosevic regime
imposed on both Croatia and Bosnia-Herzegovina and after it looted
joint assets.
According to the Vienna agreement on succession, Croatia would get
23 per cent of the joint assets, Slovenia 16%, Bosnia-Herzegovina
15.5%, Macedonia 7.5%, and Serbia-Montenegro would get 38
percent.
(hina) sp ha