BELGRADE, Serbia, Dec. 31 (UPI) -- Serbia's prime minister said President George W. Bush was instrumental in the Paris Club decision to write off two-thirds of Yugoslavia's debt despite Russian opposition, a Yugoslav newspaper reported Monday.
Zoran Djindjic met with Bush just prior to the Nov. 16 meeting of the government creditors in the French capital, where it was decided a large portion of the country's $4.5 billion-dollar debt would be erased.
"During our meeting ... he (Bush) told me that all of Serbia's debts should be written off and was puzzled by the fact that we had not been accorded most favored nation status in trade with the United States," said Djindjic, who noted that the president's aides in the room fidgeted noticeably following the president's remarks.
"We have to be thankful, above all, to the American president" for the Paris Club decision, he said. "For the first time Serbia has powerful friends rather than powerful enemies."
Djindjic had earlier noted that with a large portion of the debt erased, Serbia could speed up efforts at economic and social reform.
"From being the most problematical country in the world we have become a champion of implementing reforms and (represent) hope for the whole (Balkan) region," he said.
However, during the Paris Club meeting, "the Yugoslavs found themselves in an odd situation with the Russian delegation, which was opposed to U.S. insistence that our debts be written off." said the prime minister, referring to the traditionally strong ties Serbia has with Russia.
He said following more than a decade of international sanctions and isolation under the regime of ousted Yugoslav leader Slobodan Milosevic, Serbia would return to the international community and "boldly, at least with one leg, step into Europe."
"In the next three or four years, we will be in Europe with both legs," said Djindjic.
