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Yugoslav Prime Minister Tries To Calm National Fiscal Crisis BELGRADE, May 18 (Reuters) — Yugoslavia wants to rejoin international financial institutions and will not risk the return of inflation by relaxing monetary policy, Federal Prime Minister Radoje Kontic said on Saturday. He spoke to calm public concern after a bruising week during which Kontic's government dismissed Dragoslav Avramovic, a widely-trusted former World Bank official, as National Bank governor in a conflict over economic policy. Avramovic accused the government of trying to force him to print money to make up for its lack of foreign capital and of blocking membership of the International Monetary Fund (IMF). The dinar dipped sharply against the german mark on the black market in response to his dismissal. Kontic, opening a trade fair, said the authorities "will invest more energy in maintaining monetary stability and the dinar's exchange rate. We will disappoint all those who are secretly hoping for devaluation. There won't be any devaluation." He added: "we will take all necessary measures to normalise relations with international financial and trade organisations as soon as possible." The government's intentions are being treated with suspicion by international organisations and Western governments since it sacked Avramovic and rejected his sweeping his privatisation proposals in favour of a weaker programme which will preserve state control of the economy.

Berserkistan, May 15 · Yugoslav Economy Hangs in Balance as Bank Governor Fights On
Berserkistan, May 14 · Yugolslavia May Sack National Bank Governor
Berserkistan, May 14 · 15,000 Demonstrate in Belgrade and Nis

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