Export industries project
 Report No: ; Type: Report/Evaluation Memorandum ; Country: Yugoslavia; Region: Europe And Central Asia; Sector: Other Finance;
                                           Major Sector: Finance; Project ID: P009242


       The Project Completion Note (PCN) for the Former Socialist Federal Republic of Yugoslavia Export
Industries Project (Loans 2980-0. 2980-1, 2980-2 YU for a total amount of US$120 million equivalent,
approved in FY88) was prepared by the Europe and Central Asia Regional Office.

        The objectives of the loans were to facilitate the growth of export industries in Yugoslavia and to
improve allocation of financial resources in the country. These goals were to be achieved through: (i)
improvements in exports finance, marketing and administration; (ii) strengthening of key financial
institutions; and (iii) careful selection of export oriented projects.

        The loans were approved, but were never signed. After corresponding with the borrowing financial
institutions and the guarantor in Yugoslavia, the Bank notified them that it had withdrawn its offer. The
Bank decision was based on substantially changed circumstances in the country, following approval of the
loans, and on confirmation from the borrowing financial institutions that they were no longer ready to enter
into new loan commitments.

       Taking these circumstances and the subsequent dissolution of the SFRY into account, the project did
not carry any outcome. The PCN has not rated the project. OED has not rated the project either because it
was not implemented.

      The PCN does not discuss the relevance of project design and has a limited description of the
circumstances which led the Bank to withdraw the loans.