The European Bank for Reconstruction and Development is moving quickly to mount a major aid program for Yugoslavia, and Belgrade is making progress towards rejoining the International Monetary Fund. European Bank chief economist Willem Buiter calls Yugoslavia the hole in the donut of the Southeast Europe economy. As vital rail, road, and river transport links pass through Serbia, Mr. Buiter says rapid reconstruction there will benefit the entire region.
Some Balkan nations worry about the western rush to embrace the new Yugoslav government.
They fear that Belgrade will receive aid that would have gone to them. But, Mr. Buiter says those concerns are groundless. The Dutch-born European official says currency reform is a key priority for Yugoslavia. Without saying which method should be used, Mr. Buiter says the Yugoslavs need financial credibility. The more credible you are the easier it is.