The donors' conference for the Federal Republic of Yugoslavia will be held on June 29, 2001 in Brussels. The meeting, held at senior official level, will be co-chaired by the World Bank and the European Commission. Since the needs of Kosovo have already been addressed in separate meetings, they will not be covered at this event.

As a result of the donor co-ordination meeting held in Brussels on December 12, 2000, significant progress has been made in meeting the most urgent needs of the FRY over the winter period. In the meantime, the FRY and Republic Governments have taken the first steps towards economic stabilisation and structural adjustment. They have also reached an understanding with the IMF on an economic program to be supported by a stand-by arrangement which is in the process of being finalized, and FRY has been admitted as a member in the World Bank. The Paris Club of official creditors is also expected to give soon their first indication of how it plans to address FRY's external debt. At the June conference, donors will have an opportunity to discuss the substantial progress made on reforms and the normalization of relations with the international financial community. The FRY government will also provide an update on progress, and there will be an economic assessment by the IMF.

The World Bank, in co-operation with the European Commission, and in close consultation with the FRY government, has produced an Economic Recovery and Transition program (ERTP) for the Federation as well as for Serbia and Montenegro. The ERTP outlines a comprehensive structural reform agenda, including sector policy reforms and priority public investments, as well as identifying the urgent balance of payments / budget needs for 2001. The program is described in a document entitled "Federal Republic of Yugoslavia. Breaking with the Past: The Path to Stability and Growth", which has been published in two volumes. Volume 1 covers the economic, social and institutional reform agenda, and Volume 2 comprises a series of sector annexes.

Frequently Asked Questions

What is the total external financing requirement being sought at the donors' conference?

The needs assessment shows that an amount of US $1.25 billion is required in the first year, on a commitment basis, to cover the priorities in the Economic Recovery and Transition Program (ERTP), so this is the amount sought at the conference. These are the needs for filling gaps in investment, in recurrent cost expenditures, in technical assistance, and credit and equity lines for the private sector.

Do you expect US $1.25 billion to be raised at the donors' conference?

We do not currently have information on donor pledges, and will not know until the day of the conference. However, it is clear that there is a keen desire by donors to support Yugoslavia, and many donors will do so.

Will more funds be needed for the ERTP after this donors' conference?

Yes. The total amount needed over a four-year period is expected to be US $3.9 billion for the ERTP. We expect to organize donors' conferences each year to try to mobilize this amount in support of Yugoslavia.

Are humanitarian needs included in the ERTP?

Strictly speaking, humanitarian needs are not included in the ERTP because most of such expenditures are outside the government expenditure program. Yugoslavia has substantial humanitarian needs, which have been coordinated by UN OCHA and generously supported by a number of donors. There is an overlap between humanitarian needs and the ERTP, however, in areas such as urgent social security payments the government cannot fund from its own resources. In that sense, some selected humanitarian needs could be considered part of this program.

What is the difference between the ERTP figures and figures being issued by the Serb and Montenegrin governments?

The ERTP, which was prepared in close collaboration with the Federal and republic authorities, is the official program which donors are being requested to support. The Serb and Montenegrin dossiers describe the detailed projects which can fit into this program. The two sets of documents are consistent and very closely linked.

Can any interested party come to the meeting, and how will information on the conference be made available to the public?

Attendance at the meeting is restricted to official donors (i.e. governments and international agencies) because of the confidentiality of the pledging process. However, we will publish all results on the Seerecon website as soon as we are authorized to do so by the various governments and organizations involved. This usually leads to the publication of relevant information within a very short period after the completion of the donors' conference. The transparency of this process has been enhanced through the use of a broadly accessible website and we expect to continue along these lines.