400 million dollars wiped off Albania’s foreign debt
What was announced at the press conference held the day before yesterday at the Palace of Congresses by Deputy Prime Minister Mr. Dylber Vrioni and Mr. Shtolcervk, chairman of the Private Debt Negotiating Committee, concerning the final resolution of Albania’s foreign debt, was one of those major events that will remain forever in the memory and history of the Albanian nation.
Present and future generations will never forget that, thanks to the great efforts of an entire people, after the new Albanian democracy’s titanic, persistent struggle, the President of the Republic, Mr. Sali Berisha, and the Albanian Government achieved two great accomplishments, one after the other, in a short time—accomplishments without comparison: Albania’s admission to the Council of Europe and the final resolution of its foreign debt. Two symbolic dates, two great acts in the Albanian universe that enabled Albania to enter European currents and go there proudly, without complexes and without debts. And it has earned this. No one gives you anything unless you do something for yourself; … on the stock exchanges of Paris, London, Milan and Zurich, and when they saw that they were losing, they sought money, took on new loans, accumulated dollars, marks, francs and every other currency, deceiving and making endless promises, shouting that they were “a serious socialist state,” that they had active trade balances, that they exported more than they imported, that they had reserves and secret treasures, and that one day they would repay everything. Poor Albania—how could ordinary people have known that the foreign debt amounted to more than half the country’s annual national income, almost as much as the entire output consumed by a whole people in one year, and three to four times more than the so-called “socialist accumulation”? Albania had to pay more than 100 million dollars a year just in interest on the debt, and all these sums went to waste: not a cent for investment in consumption or accumulation in recent years, not a dollar to increase production or introduce advanced technology, not a penny for infrastructure or the meagre services of democratic governance.
Delors described Albania as a special case two years ago. Yes, a special case not only because of its recent communist past, but also because of its democratic present and future. And who could understand this truth better than those at the IMF, the World Bank and other institutions in the world of finance and banking? They were not mistaken. Democratic Albania opened a new era. It soon began emerging from the country’s deep economic and financial crisis. It set about reforming every aspect of the country’s life. Radical reforms based on democratic principles and laws, with a new European philosophy, in the face of numerous obstacles and difficulties. It made headway in privatizing the economy and liberalizing market prices, and along the path of major macro- and microeconomic transformations in money and finance, production and services, and living standards. It soon brought the country out of isolation, opened new horizons and ushered in the victory of political and economic stability—a victory for the successful implementation of reforms in every field.
The victory on the economic front is even greater for the Albanian economy in terms of unlocking the country financially. This unlocked financial relations and payments, making investment in Albania possible for Europe’s leading banks. This, naturally, will soon have a major positive impact on the projects they undertake in our country. But the greatest victory is the political and moral one, which gives Albania a new image in the world. As the President of the Republic has said: “We not only showed that we acknowledge the foreign debt inherited from communist governments, but also that we are honest debtors.” With this, democratic Albania preserved and raised its dignity to a higher level, earning a positive reputation in the world.
The agreement signed the day before yesterday was a political victory for the democratic government because it not only unlocked Albania’s financial activity, but also opened new prospects for cooperation with Europe’s prestigious institutions, directly serving its prospects for integration into Europe. An entire people worked for this victory. The Albanian head of state—the President of the Republic—worked for it day and night. The entire democratic government worked for it. A small group of people also worked for it: small in number, but great in ideas and actions, with concrete results, dedication and professional ability, led by a democratic Deputy Prime Minister who demonstrated integrity, seriousness and professionalism. You cannot persuade the banking and financial world to release you from a heavy debt of 400 million dollars without serious work and professional expertise. The concrete result is the greatest tribute to the team that worked on and negotiated the agreement. Figuratively speaking, they presented the Albanian people with a bouquet of fresh flowers during these hot days of a hot summer. There is no more beautiful bouquet for the Albanian people than freeing them from a heavy burden on their backs—a burden that would have weighed on them for a long time and deprived them of the opportunity to invest in production and services, infrastructure, industry, agriculture, construction, transport, education, culture, health care, etc.
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Two symbolic dates, two major debts. And it has earned this. No one has the right to deny this; no one gives you anything unless they see and are convinced that you deserve it—not as alms, but as generous assistance in Albania’s efforts for a true democracy, a state governed by the rule of law and a modern market economy with a social dimension. It is no coincidence that many people around the world call Albania “a special case.” It is so because of its past, the crimes of a savage dictatorship against its own people, the communist hell it created in this part of the Balkans, here in the heart of Europe, its abject poverty, the imprisonment and internment of the people’s finest sons and daughters, the barbed wire that encircled Albania, its profound isolation, and everything evil and ugly that the red communist monster could spawn. Yes, it was a special case in Europe. It was the poorest country, with the lowest production and per capita consumption in Europe, and also the lowest growth in the world. It was exceptional for its poverty and misery, for the troubles and sorrows inflicted on it by a paranoid, debased clique of incorrigible wrongdoers. But it was also exceptional for its huge foreign debt, left to it as an inheritance like chains on its back, a knife in its heart and a noose around its neck by the ruling clique of the red nomenklatura—Hoxha, Alia, Qarçani, Nano, etc.—who, with their luxurious lives in villas, guest houses and numerous estates surrounded by soldiers, their endless journeys and spending, and their princely holidays, with the recklessness of a gambler, put Albania up for auction and borrowed huge sums of money, hundreds of millions ...
Two symbolic dates, two landmark acts: [the debt was reduced to] 100 million dollars a year, and all these macro- and microeconomic sums in the fields of money and finance, production and services, and living standards; the country was soon brought out of isolation, new horizons were opened, and Albania was set on the path of European development. It stabilized the finances and inflation and brought them under control, set economic growth and development in motion, and built dynamic development models to rapidly place Albania among developed countries, with clear prospects for prosperity. All this development was given a name by those foreign friends who were friendly toward Albania: they called it “a surprise success.” It was natural that after three years of achievements and successes in reforming Albania, the conviction should arise that this small democratic country, exhausted by poverty and the heavy legacy of the past, had to be freed from what had been unjustly loaded onto its back: a staggering foreign debt. With their fortunate conviction, they intervened with the politicians of their own countries and helped overcome the difficult climate created by Albania’s foreign debts. Creditors, too, sent a message in response to the reforms achieved in Albania: their confidence and conviction favoured the negotiations and created the belief that democratic Albania is a serious new state, and that the reforms in Albania are firmly supported by all partners who will invest there. New horizons opened for them in cooperation with Europe’s prominent investors, directly serving Albania’s prospects for integration into Europe. This was a great victory for Albania, a success and a ...
[The column continues discussing loans, foreign debts, privatization, investment and economic development; substantial portions of the text in this area are unrecoverable because of cropping and overlapping columns.]
... 400 million dollars for Albanian taxpayers. This represents an important achievement. For a developed country, 400 million dollars is not a large sum, whereas for Albania, which urgently needs billions of dollars to completely renew its road network and water supply, 400 million dollars today are more valuable than 4 billion ten years from now. When I say Albania, I mean Albanian taxpayers, because these hundreds of millions of dollars will be paid with their sweat.
But in economic terms, the financial unblocking effect of the agreement you reached yesterday is many times greater for the Albanian economy. In practice, yesterday’s act unblocked financial relations, and the obstacles that had existed for our country have created the ground for partners to have a presence in Albania as well. favorable climate for cooperation, not only within the team but also with the creditors.
Mr. Fullani stated: “Among the factors that contributed to reaching the agreement was also the institutionalization of the committee, which, with direct support from President Berisha and the Meksi Government, can play its decisive role in these negotiations.”
President Berisha and the members of the external debt repayment committee then also discussed the progress of privatization in general and the possibility of privatizing banks in the near future.
... more than and services, and living standards quickly brought the country out of isolation, opened up new horizons, and set Albania on the path of European development. It stabilized public finances and inflation and brought them under control, initiated economic growth and development, and built dynamic development models to rapidly rank Albania among developed countries, with clear prospects for prosperity. Foreign well-wishers and friends, whom Albania gave a name to, called all these developments take hold that this democratic country, small and ought to be freed from what had been unjustly placed on its shoulders: a staggering external debt. With this fortunate conviction, by intervening with the politicians of their own countries, they helped overcome the difficult climate created by Albania’s external debts. With the reforms achieved in Albania, the creditors also sent their message: through their trust and confidence, they favored the negotiations and came to believe the reforms in Albania are a strong guarantee for all partners who will invest in Albania. New horizons opened up for them in cooperation with Europe’s renowned investors, which directly serves victory for Albania, a success ...