Yugoslavia has won a new three-year, $829m loan from the International Monetary Fund (IMF), despite opposition from the US.

The IMF executive board meeting in Washington on Monday approved the loan.

Belgrade will receive about $64m as soon as Tuesday, as well as a similar amount left over from the last $255m tranche.

The decision to lend money to Yugoslavia could also herald a loosening of purse strings in other areas, not least foreign aid.

The Paris Club of international creditors set agreement with the IMF as a condition for dropping two thirds of Yugoslavia's $4.5bn debt.

Unhelpful

And it comes in spite of opposition from the US, whose shareholding of about 18% in the bank makes it the most influential single member.

The US was one of Yugoslavia's strongest supporters in the world of international finance immediately after Slobodan Milosevic was evicted from the presidency in October 2000.

But as the country dragged its feet over sending suspects to the War Crimes Tribunal in the Hague, Congress voted earlier this year to block aid.

The restriction remains in place, although Yugoslavia's parliament is working on a law to allow war crimes suspects to be extradited.