Yugoslavia - New Financing Agreement (1988)

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New Financing Agreement (1988)

The original obligors of Yugoslav debt were both specific entities within the country as well as Federal organizations. Since the dissolution of the country, the successor States have assumed responsibility for those portions of the debt which are readily attributable to their respective countries. As of 1994, no agreement has been reached on the re-distribution of former Federal debts; officially, the six Yugoslav republics are jointly responsible for former Federal debt.
In January 1992, the National Bank of Yugoslavia ceased servicing the portion of the foreign debt which it attributed to Slovenia and Croatia, all other payments ceased in June 1992 when United Nations sanctions against Serbia and Montenegro prevented foreign banks accepting payments. In January 1994, the Bank of Slovenia opened an account with Dresdner Bank Luxembourg and has been paying into escrow debt servicing amounts which it calculates are owed by the Republic of Slovenia.