Brussels calls for: “Dialogue must begin in Albania” Six students from the hunger strike have ended up in hospital. Their condition is getting worse. Last night, meeting of the 15 EU foreign ministers: “The principles of democracy must be respected” VLORË - The situation in Vlorë is very tense. The students who have been occupying the premises on hunger strike for five days have begun experiencing numerous problems as a result of not eating: headaches, rapid heartbeats and general weakness. Doctors have taken away and urged six students, whose health had become the most serious, to end their hunger strike. Three other students are once again in the same condition. The students occupying the premises now lie down all the time and try to “save” themselves from any unnecessary movement. Tens of thousands of demonstrators have continued their protests in Flag Square and especially in front of the University building. Yesterday, demonstrators also called for the closure of the Municipality offices and the suspension of work at the Court and Prosecutor’s Office. While the situation in Vlorë is worsening, criticism of Tirana is arriving from Brussels. “The principles of democracy and international obligations must be respected” is the essence of the conclusions reached last night by the 15 foreign ministers of the European Union. As always, there was also an appeal for dialogue: “The government and opposition must sit down and talk.” Italian Minister Dini stated that support should be given so that “that country can overcome its difficulties.” He added that “the Albanian issue deserves special attention.” On pages 2, 3 Vefa’s money: Who is collecting today in Tirana and Vlorë On page 4 Students from Vlorë on hunger strike (Photo: H. Pustina)

Andrea Stefani The collapse of the pyramid schemes and the accelerated repayment of debts by the companies have caused the terrifying slide of the Albanian lek in the markets, with no end in sight. The price of one US dollar has surged and has almost reached 140 lekë. Frightened by this drastic fall in the exchange rate of the domestic currency, the state-owned second-tier banks reacted yesterday by significantly raising interest rates on some types of deposits in the domestic currency. Yesterday, the US dollar reached a selling price of 139.40 lekë on the Tirana currency market, rising rapidly by 5 lekë compared with Saturday. There is no doubt that the main factor behind this phenomenon is the influx into the non-bank circulation channels of considerable sums in lekë, as a result of the repayment of debts by the “Populli” and “Xhaferri” foundations, and especially the return of part of the clients’ capital by the “Vefa” holding company. This is an expansion of the money supply in non-bank circulation in lekë, and an acceleration because “Vefa” also made its deposits in lekë, at the daily exchange rate. Meanwhile, it should be noted that the payments by the two pyramid foundations are also made only in lekë. As the amount of lekë grows at a galloping pace every day, the amount of foreign currency available to match it shrinks relatively; consequently, its price rises. The foreign-currency supply is physically expanding far less than the swelling mass of lekë, while the psychology of inflationary panic has taken hold of people. More and more people, as soon as they withdraw sums in lekë from the counters of the foundations or companies, rush to exchange them for foreign currency on the market, fearing that the corresponding amount of foreign currency will no longer be available for the millions earned from selling goods. Consequently, the drastic increase in the supply of lekë is absorbed in the exchange market, turning into increased demand for foreign currency. Everyone is eager to shed the “burden” of the lek as quickly as possible—and this has nothing to do with patriotism—and exchange it for foreign currencies. The lek falls, and with it the real purchasing power of citizens’ wages and pensions, which are still modest. Along with the lek, everyone is becoming poorer economically. Faced with this [trenɪ?] of the state’s monetary symbol, the National Commercial Bank announced yesterday a substantial increase in interest rates on its 12-month lek deposits, while interest rates on foreign-currency deposits remain fixed at much lower levels. This is an anti-inflationary measure intended to encourage people to deposit their sums in lekë with the banks, thereby drawing them out of non-bank circulation. It remains to be seen whether this attractive offer will persuade people, at the crossroads between the foreign-exchange market and the banks, to choose the latter’s counters. And if that does not happen, it would not be at all surprising if the banks took further steps up the interest-rate ladder. But perhaps the main weapon in the fight against inflation in monetary policy is raising interest rates, which also has the flip side of the coin, the negative side: tightening credit and therefore investment. Without safeguards and measures in the fiscal policy sphere—such as reducing some business taxes to offset the tightening of investment costs—an anti-inflationary policy pursued in a drastic way could restrain economic growth. In addition, there is the fiscal deficit, with the nightmare of its deepening at the center. It is a vicious circle with many sides, which the Government must face...

Oxa with her uncle Oxa: “I dedicate the prize to Albania” On pages 5-8

Creditors have lost 145 million dollars The State Audit Office takes stock: bribes, sponsorships... TIRANA - “Gjallica is a pyramid scheme.” Having reached this conclusion about the four-year-old company, the heads of the State Audit Office have presented the main figures concerning its accounts. The creditors have suffered actual losses of more than 145 million dollars, and this is precisely the amount that must be repaid to them. The report also lists a series of sponsorships made by its managers, expenses for receptions and farewells, and various loans granted to several people. It also mentions a sum of 50 thousand dollars injected into the Democratic Party. Yesterday, however, the Democrats’ economic offices confirmed that “it is true that we received money, but the law allows us to do so.” On Monday in Durrës, more than 300 representatives of the company’s creditors called for a hunger strike if their money was not returned to their wallets. On page 4 Gjallica headquarters in Vlorë

A woman is robbed and riddled with bullets from an automatic weapon TIRANA - Another young man has fallen into the trap of drugs. The young R. H. from Tirana was gripped by the claws of the white poison after an overdose. Just a few weeks after he had struggled to give up the deadly syringes, he could not resist the terrible temptation and tried again. But this time, the large amount of cocaine proved fatal, causing his death. The young man from Lapraka had been using drugs for about a year, while his family had found out only a short time ago. Meanwhile, also in Tirana, another incident has claimed the life of a young woman, a mother of three children. She was attacked by two people wearing helmets, who robbed her and then shot her with an automatic weapon. On page 9

Vlora students on strike (Photo: H. Pustina)

The headquarters of Gjallica in Vlora

The State Audit Office takes stock: bribes, sponsorships...

Vlora: Boycott of the Championship On page 10

Albright: “A new era with China” On page 11 Albright