Milosevic admits defeat

Thousands were on Belgrade streets for a victory rally

Yugoslavia's ousted President Slobodan Milosevic has congratulated Voijislav Kostunica on his victory in the country's elections, and announced his resignation.

In a televised address to the nation, Mr Milosevic said he wanted to spend more time with his family, rebuild his party and prepare to make a political comeback.

In the latest foreign reaction, US President Bill Clinton said a cloud over the Balkans had been lifted.

I wish all citizens of Yugoslavia much success in the coming mandate of the new president

Slobodan Milosevic

Mr Kostunica, the president-elect, earlier held an hour-long meeting with Mr Milosevic, in which he said the former president had acknowledged his victory.

Speaking in a televised interview, Mr Kostunica said he had also received assurances from senior army officials that they would not try to regain power for the deposed president.

Celebrations are continuing in the Yugoslav capital

Tens of thousands of people were out on the streets of Belgrade at a victory rally for Mr Kostunica, who was brought to power through Thursday's mass demonstrations, bringing an end to Mr Milosevic's 13-year rule.

Mr Kostunica, who has formed a crisis committee to govern the country, could be formally installed as president in the inaugral meeting of the new Serbian Parliament as early as Saturday.

International backing

Despite Mr Milosevic's apparent dreams of a political comeback, the international community has been quick to recognise Mr Kostunica as Yugoslavia's new leader, and is considering ending sanctions imposed against the former regime on Monday.

Mr Milosevic was seen for the first time in days, talking with the Russian envoy

US President Bill Clinton welcomed the succession of Mr Kostunica, and called the popular uprising which ended the Milosevic regime as an "extraordinary victory" for the people of Yugoslavia and the world.

"This is just as big a blow for freedom as we saw when the Berlin wall was torn down and when Lech Walesa led the shipyard workers in Poland," he said.

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The White House said the US, along with its European allies, would move quickly to lift sanctions once it was clear that Mr Milosevic had been removed from power.

"What we witnessed yesterday was the democratic self-liberation of the Serb people," said German Foreign Minister Joschka Fischer.

And France, the current holder of the European Union presidency, has invited Mr Kostunica to an EU summit later in October.

French President Jacques Chirac said Mr Kostunica had been invited so that EU leaders could study with him European assistance for "the emergence" of a democratic Yugoslavia.

Russian seal of approval

Further moves to anoint Mr Kostunica continued on Friday, the most significant of these coming from Russian and Yugoslav institutions.

Support is mounting for Mr Kostunica at home and abroad

Russia - an ally of Mr Milosevic throughout the Nato bombing campaign - has recognised Mr Kostunica the new president following meetings between Russian Foreign Minister Igor Ivanov and Mr Milosevic on Friday.

Mr Ivanov also held separate talks with Mr Kostunica, in which he conveyed a message of congratulation from Russia President Vladimir Putin.

Yugoslavia's chief of the army, Col-Gen Nebojsa Pavkovic also moved to endorse the new government, and sent his congratulations to Mr Kostunica.

In an about-face, Yugoslavia's Constitutional Court ruled that Mr Kostunica won an outright victory in the country's presidential elections.

That same court, earlier this week, annulled part of the election results and said that the vote would have to be re-staged before Mr Milosevic's presidential mandate expired next year.

Protesters in front of parliament call for Milosevic to go

Genocide charges

The campaign against Mr Milosevic gathered pace on Friday, as the UN's chief war crimes prosecutor, Carla del Ponte announced that he would "very soon" be indicted for fresh war crimes charges - in addition to the charges he already faces for alleged crimes in Kosovo.

Ms del Ponte said: "We are working very hard and I expect to come up very soon with indictments against Milosevic about genocide in Bosnia and Croatia."

Some 250,000 people died in the 1992-1995 Bosnian war and about 20,000 people lost their lives in the 1991 Croatian war. Mr Milosevic was president of Serbia during both wars.