Yugoslavia’s agreement on a draft debt rescue...

Yugoslavia’s agreement on a draft debt rescue deal with the International Monetary Fund will give international bankers more say in running the economy and could lead to an early currency devaluation, analysts said. The accord involves a one-year standby credit believed to be about $500 million. Western analysts said it was likely to be followed by a big devaluation of the dinar, the second in six months, the end of the present price freeze and a fresh spurt of inflation, already running at 158% a year. A devaluation boosts exports but increases import costs. The draft accord, which still has to be ratified by both sides, paves the way for further fresh loans from the IMF, World Bank and Western creditors.