even more sweeping economic reforms, which included a new devalued currency, another wage freeze, sharp cuts in government spending, and the elimination of socially owned, worker-managed companies. The Belgrade nomenclature, with the assistance of western advisers, had laid the groundwork for Marković's mission by implementing beforehand many of the required reforms, including a major liberalization of foreign investment legislation. The country's state owned banks obligated to adjust their interest rates to the inflation, but this could not be applied to loan contracts made earlier which stipulated fixed interest rates. During this time, foreign currencies became widely circulated and accepted by businesses along with cheques; especially the German mark. The first hyperinflation stabilization program was adopted under the name Economic Reform Program, passed in late 1989, when, for the most part, due to total price liberalization, Yugoslavia was hit by hyperinflation. The monthly price level increased from month to month, and in December 1989, the inflation percentage was 45%. There was a constant rally in prices, wages and exchange rates. In such a situation in December 1989, the Economic Reform Program and measures for its implementation were adopted. The basic measures envisaged by this program were restrictive monetary policy and real positive interest rates, independence of the National Bank of Yugoslavia, denomination of the dinar by "deleting" four zeros, proclaiming the convertibility of the dinar and fixing the dinar exchange rate against the German mark at a ratio of 7:1, freezing of nominal wages for a period of 4 months, freezing of the prices of some inputs (energy products and infrastructure) for a period of 4 months, further foreign trade and fiscal account liberalization, rehabilitation of banks and companies through a special fund that would be formed with foreign financial support, negotiations with the Paris Club of Creditors about debt restructuring, and the International Monetary Fund and the World Bank for a loan to help stabilize the economy. In the short term, or at the beginning of the application, the program showed some good results: there was a significant slowdown in price and salary growth, foreign exchange reserves -- whose level was significant even before the beginning of the application of the Program -- started to grow, there was marked positive progress in reducing the foreign trade and budget deficits, etc. However, from the very beginning, there was a decline in industrial production and employment, and somewhat later, the initial positive