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http://news.bbc.co.uk/hi/english/world/europe/newsid_1742000/1742286.stm Friday, 4 January, 2002, 15:20 GMT Yugoslav bank protests grow Around 8,500 bank employees will lose their jobs Protests against the closure of four big Yugoslav banks are spreading, with more than 1,000 employees locking themselves in the banks' offices in several cities. About 500 workers of the Beobanka and 400 employees of the Beogradska Banka and Investbanka are staging sit-in protests in the banks' main offices in Belgrade. "We will stay here until they reverse their decision to shut down the banks," said a representative of the Investbanka trade union Gordana Djukelic. Protests have also been reported in the cities of Krusevac, Nis and Vranje. Massive lay-offs About 8,500 jobs are likely to be lost following the closures of Beogradska Banka, Jugobanka, Investbanka and Beobanka - which counts Slobodan Milosevic among its former directors. Trade unions say that for every 1,000 employees laid off, another 5,000 jobs are in jeopardy in a country where unofficial unemployment runs at more than 50%. However, the government says about half of all affected employees could find new jobs in one of four new financial institutions, which would take over all bad loans and start trading in them. The Yugoslav President, Vojislav Kostunica, is meeting Serbian Finance Minister Bozidar Djelic and Yugoslav Central Bank Governor Mladjan Dinkic to discuss the issue. Radical move The Yugoslav Government forced the closure of the four banking giants, which have been beset by high debt and declining public confidence. The move, which marks the launch of broad, World Bank-sponsored reforms of the country's financial sector, represents the biggest corporate closures so far in Yugoslavia. A costly rescue operation was halted and financial support was withdrawn because the government did "not have the resources required for this operation", Mr Djelic said. "No domestic or foreign banks are willing to take over the four banks," he said. The government pulled out when it became clear that the $17m (£11.75m) it had poured into the banks over the past 10 days had failed to pull them out of their difficulties. Analysts say other shut-downs could soon follow as the government presses on with a shift towards becoming a Western-style market economy. ========= __________________________________________________ Do You Yahoo!? Send FREE video emails in Yahoo! Mail! http://promo.yahoo.com/videomail/ ==^================================================================ This email was sent to: archive@jab.org EASY UNSUBSCRIBE click here: http://topica.com/u/?a84x2u.a9WB2D Or send an email to: [EMAIL PROTECTED] T O P I C A -- Register now to manage your mail! http://www.topica.com/partner/tag02/register ==^================================================================
