The Slovenia Times

Deal Signed with US to Repay Share of Ex-Yugoslavia's Debt


The deal signed by Finance Minister DuĊĦan Mramor and US Ambassador Brent Hartley in Ljubljana on Thursday resolves the issue of Slovenia's share in the former federation's debt to US Agency for International Development (USAID).

The money for the repayment of a total of US$2,070,938 debt is secured on a separate account of the Slovenian Succession Fund. The payment is due on 31 July this year pending ratification by the Slovenian National Assembly.

"By signing [the agreement] the countries resolved an issue from the past and will be able to focus on constructive cooperation in topical challenges," the release from the Finance Ministry reads.

The government of the Socialist Federal Republic of Yugoslavia (SFRY) signed four 40-year loan contracts with the US Exim Bank in 1958-1961. USAID assumed the management of these debts in 1961.

Until its breakup, the SFRY regularly repaid loan instalments, but then the successor countries split up the unallocated debt amongst themselves under a key of the International Monetary Fund.

The other successor states recognised the debt in the Paris Club-sponsored bilateral talks with the US. Slovenia, which had signed an agreement with the US under the Paris Club earlier, was not officially notified of the debt then.

The countries agreed for Slovenia to assume its share of the debt like the other successors under the IMF key at 16.39% (and not 16% as determined in the Succession Agreement).

They also agreed for the issue to be resolved in a bilateral agreement and that Slovenia settle the liability in a single instalment once formal conditions are met.

Under the agreement, Slovenia will pay its share of the principal and interest at the annual rate of 3.5% until 6 May, 1996 - the day Slovenia signed the agreement with the US under the Paris Club - but not after that date and until 31 July, 2015.


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