27/05/1997
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Gazeta Shqiptare

27 May 1997

Currencies soar The lek and the economy sacrificed on the altar of sterile politics

Andrea Stelani The US dollar is trading at over 170 lekë, while 1 German mark costs as much as 1 dollar used to. 100 lekë—whereas just a few months ago, 5 were needed for one German mark. The lek has depreciated by around 70 percent, and the downward trend in its exchange rate still seems to be... [text continues at the bottom edge of the image] ...unfavorable. Every slight depreciation of the currency and tightening of policy is automatically accompanied by increases in import prices. Traders offset the rise in the “price” of foreign currencies by raising the prices of goods. Thus imports “translate” the depreciation of the lek, transforming it into inflation. In turn, this inflation itself has a paralyzing effect on trade. Being the purchasing power of the masses, it also narrows demand for various kinds of goods originating in foreign markets. Meanwhile, many other factors of domestic production, as well as its exports—with an anti-inflationary impact and in favor of the domestic currency—have rapidly deteriorated. Production is falling drastically, while the trade deficit is also deepening. Now, when Albanian products cost foreign traders very little, Albania has almost nothing to sell to fill the foreign-currency gap. And every sign points to the situation worsening even further, as the political crisis intensifies. Prices will climb even higher, alongside the continued weakening of the lek. For the first time in Albania, the fluctuations of the economy and politics are appearing in their most catastrophic form. Any citizen who does not possess foreign currency may ... [continues outside the image] ... [The article text begins cut off at the top edge.] ... to engage in currency exchange, exchanging foreign currencies for the domestic lek. Official statistics speak of an average flow of around 300 million dollars that passes through the channels of Albanian finances each year. Alongside the assistance sent to relatives in Albania, which brings in foreign currency earned through work, sent through ... by emigrants, there were also the super-interest payments handed out by the pyramid companies. The collapse of several pyramid schemes seems to have significantly reduced the inflow of money from emigrants. Foreign currency has become very scarce, and more expensive. The reduction in the supply of foreign currency, while income from emigrants has increased, is a clear sign of the increased demand for it. In the midst of the Albanian economy, a clear shift has begun to take place — perhaps a major one for some, and one that reflects the country’s economic clashes and needs — a ... significant data ... concerning the exchange rate of foreign currencies against the lek and prices ... ... even more so as the political crisis worsens. Prices will rise further, with the increasing financing of borrowing in lek. For the first time in Albania, the connection between the economy and politics is appearing in its most disastrous form. Any citizen who does not have foreign currency may not bear the personal cost — only its financial aspect — of political madness, through the depreciation of their real wages and purchasing power day after day, as well as the challenges posed by the need to obtain ... This indicator alone is enough to understand how antisocial the developments are and the struggle for power taking place in Albania today. If the political forces cannot emerge from the swamp of disagreements, it will not be long before the catastrophe that has erupted becomes the cause of mass misery. And then people will have no choice but to call today’s politicians bringers of misfortune. But will this misery understand?

Vranicki’s ultimatum expires

OSCE mediator’s visit postponed Opposition parties present their final demands to Fino: Take them to Berisha so we can enter the election Vranicki: “I have no plans to go to Tirana this week.” OSCE report tomorrow On page 3 Nano urges the parties: “Stay in the government.” Pollo: “Enough roundtables, let the campaign begin” On page 2 Fino calls for an international troika in Tirana. Prodi: “Albright was against it” TIRANA - A new failure by Albanian politicians to achieve a popular confrontation that does not seem likely to take place. Once again, controversy, [?], stubbornness and little hope of reaching a compromise on the electoral law. The marathon meeting on Monday evening between the Prime Minister and the political parties produced no result this time either, and no agreement was reached; yesterday, in fact, participants left the table irritated. Fino declared on Monday evening that his government was now out of the game and called for the urgent intervention of the International Community. He immediately informed the chief mediator of the Albanian crisis, Franc Vranicki, Secretary of State Ollbrajt, and Italian Prime Minister Romano Prodi. But PD is once again insisting on a law approved by the more left-wing Parliament. Other chiefs arrived in Tirana yesterday and [the following passage is repeated in the source]: was Parliament. Other chiefs arrived in Tirana yesterday and was Parliament. Other chiefs arrived in Tirana yesterday and was Parliament. Other chiefs arrived in Tirana yesterday and was Parliament. Other chiefs arrived in Tirana yesterday and was Parliament. Other chiefs arrived in Tirana yesterday and was Parliament. Other chiefs arrived in Tirana yesterday and was Parliament. Other chiefs arrived in Tirana yesterday and was Parliament. Other chiefs arrived in Tirana yesterday and was Parliament. Other chiefs arrived in Tirana yesterday and was Parliament. Other chiefs arrived in Tirana yesterday and was Parliament. Other chiefs arrived in Tirana yesterday and was Parliament. Other chiefs arrived in Tirana yesterday and was Parliament. Other chiefs arrived in Tirana yesterday and was Parliament. Other chiefs arrived in Tirana yesterday and was Parliament. Other chiefs arrived in Tirana yesterday and was Parliament. Other chiefs arrived in Tirana yesterday and was Parliament. Other chiefs arrived in Tirana yesterday and was Parliament. Other chiefs arrived in Tirana yesterday and was Parliament. Other chiefs arrived in Tirana yesterday and was Parliament. Other chiefs arrived in Tirana yesterday and was Parliament. Other chiefs arrived in Tirana yesterday and was Parliament. Other chiefs arrived in Tirana yesterday. Photograph of a man at a conference, with a microphone.

Fino: “Berisha should make only 2–3 changes”

“Appointments to the Commissions, election time...” TIRANA - “Berisha should clear the way for me too, and then let us go to the elections together.” This is the essence of the latest message that Prime Minister Fino has sent to the President of the Republic. The number one official of the Government of National Reconciliation spoke out on the BBC microphone about the reasons for the deadlock in Albania’s political and electoral situation. Fino speaks about the commitments his cabinet has undertaken to take Albanians to the polls, but makes it clear that, with the stubbornness of the DP and its Parliament, everything will be very difficult. He lists some of the main points that the parties participating in the government are seeking to change in the document approved for the elections. On page 2

Consulate soldier: Mysterious suicide

The Greek man was shot by his own weapon GJIROKASTER - One of the Greek soldiers was killed yesterday at the consulate in Gjirokastër. The bullet that caused his swift death has left behind many unresolved mysteries surrounding the incident. Although the most widespread version is that of suicide, an accidental shot by a fellow soldier who was beside him at that moment has not been ruled out either. Groups of experts from both countries have held lengthy discussions with one another about the incident.

Vlorë, the city frightened by machine-gun fire

A rumor in the wind empties Flag Square VLORË — Vlora has been gripped by fear of guns. Following the latest tragic news, another 18-year-old became the victim yesterday of an organized attack, who knows where from, and by whom. The young man’s lifeless body remained at the scene for several hours. No one dared move the victim. A rumor spread in Vlora yesterday caused almost all passersby to leave Flag Square from the early hours of the afternoon. The first to see it were school students. At many of the city’s secondary schools, parents demanded greater guarantees for their children’s safety. Some of the school principals ... [the column text is cut off/unreadable at the end].

Gang battle in the city: 2 killed

BERAT On page 3

Ambush in the forest: Money changers shot

ELBASAN On page 5

Earthquake victims: 300 people in a warehouse

GRAMSH On page 3

Avenges his father 30 years later

LIBRAZHD On page 3

Thaka: Here’s why the Championship didn’t start

“Flamurtari could not be excluded” The FSF deputy secretary explains the reasons for the suspension of football TIRANA — Foreign accusations against the Albanian Football Federation are ... Yesterday ... the decision of the ... Albanian Olympic Committee. This morning ... is expected ... In the UEFA Cup ... Met ...

TIRANA - A new failure by Albanian politicians to achieve a popular confrontation that does not seem likely to take place.

[Small text in the photo, partly illegible.] KINSHASA - ...

Consulate soldier:

The Greek man was shot by his own weapon

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