BELGRADE Cash-strapped Yugoslavia is finally to receive more than a billion dollars in international aid after extraditing Slobodan Milosevic, but its political leadership was grappling Saturday with the political fallout of handing over the former president.

According to AFP, a long-awaited International Donors' Conference, sponsored by the World Bank and European Commission, pledged more than 1.28 billion dollars to help economically-crippled Yugoslavia this year.

But the country was gripped by political upheaval as Prime Minister Zoran Zizic resigned over the extradition, and President Vojislav Kostunica, an outspoken critic of the UN War Crimes Tribunal, said that his predecessor's transfer was not constitutional.

Milosevic's handover to the International Criminal Tribunal for the Former Yugoslavia (ICTY) has "provoked contradictory effects," said Belgrade political analyst Zoran Lutovac.

"On the international level, it strengthened the role of Serbia and Yugoslavia, while on the domestic level it could destabilize the country," Lutovac said.

According to the Constitution, if the Yugoslav prime minister resigns, his cabinet also must resign.

Cooperation with the UN tribunal "has disrupted coalition relations within the federal government and has led me to resign," Zizic, one of the leaders of the Montenegrin Socialist People's Party (SNP), told reporters.

The SNP, allied with Milosevic until his ouster in last October's mass rising against the former hardliner, jumped ship and joined Serbia's reformist coalition DOS to form a federal government.

However, it firmly rejected Serbia's proposals to adopt a federal decree on cooperation with the ICTY, which would pave the way for extradition of Yugoslav nationals, banned by the Constitution.

Despite Zizic's resignation, the government will stay in place until Kostunica proposes a new lineup, for which he has no deadline under the Constitution.

Zizic said Kostunica would start consultations with political leaders over the composition of the new government on Monday, rather than calling early elections on the federal level.

Analysts said it would be tough to call federal polls in Yugoslavia, where voters have cast ballots twice in the past 10 months.