U.S. Forgives Majority of $589.4-Million Debt

The United States forgave more than half of Yugoslavia's debt in a sign of improving relations with the Balkan nation's reformist leadership.

The agreement erases $353.7 million, or about 60%, of Belgrade's $589.4-million debt to Washington. The write-off was signed by U.S. Ambassador William Montgomery and Yugoslav Foreign Minister Goran Svilanovic.

Montgomery said the U.S. move was a sign of support for economic reforms, the state-run Tanjug news agency reported.