Statement by the Italian Ministry of Foreign Affairs The Italian Ministry of Foreign Affairs issued a press statement on Monday saying that Undersecretary of State for Foreign Affairs Piero Fasino had received Albania’s ambassador, Pandeli Pasko, at the Farnesina villa. Ambassador Pasko presented Mr. Fasino with the initiatives that the Albanian authorities intend to undertake in connection with the recent crisis, caused by the bankruptcy of several financial companies. Mr. Fasino reaffirmed the Italian government’s commitment to supporting Tirana’s efforts toward ever greater democratization of political and economic life in Albania.

Consultation by President Berisha with political and trade-union forces To manipulate criminal elements who are ready to rob, traffic or kill, regardless of whether pyramid schemes exist or collapse, is a very wrong choice. These elements thought their kingdom had arrived. I assure you that the kingdom of crime will never come to Albania. The Socialists remain out in the street again The Socialists and their left-wing delegates gave yet another proof that they remain steadfast to the end in their position of not participating in the country’s political life. Although the occasion chosen this time to reject dialogue is extremely inappropriate, because it concerns a financial calamity affecting Albanians, the Socialists and the forces grouped in the Red Front nevertheless wrongly believe they have an opportunity to exploit in favor of their policy of destruction and mockery of Albanians’ financial misfortune. The President of the Republic invited them to take part in a political roundtable of parties and trade unions to discuss the fate of this calamity and how it might be alleviated as much as possible. The former communist responded with unprecedented cynicism, rejecting the invitation and portraying that refusal as a shrewd political act. The “arguments” they came up with to justify the refusal are, above all, an expression of the political crisis of these parties, which believe they have an opportunity to re-enter Albanian politics. Meanwhile, it is well known that the present moment, which the Socialists used to set the country on fire, is the worst and most reprehensible choice a [text cut off] can make. [Photo: participants at the roundtable] of the government commission, so that it could verify the matter once again with a group entirely different from the one that had worked on it. The coefficient will be announced this afternoon or evening. The government will fully uphold its decision to begin distributing the money from the “Xhaferi” foundation on 5 February. AFP: What appeal would you make to the citizens of Albania? I once again appeal to the citizens of Albania to remain calm and have full confidence in private initiative; the government will support this initiative. Yesterday’s decision by Parliament [text cut off]. A week ago I invited them and they did not come. I will invite them again. Will the “Gjallica” company ultimately become a joint-stock company? No. I cannot confirm that. The investors will determine its form. Regarding the “Gjallica” company, the prosecution has ordered its confiscation because it lacks the capacity to pay investors their percentage. AP: Do you have information about the situation of depositors who lent money at interest? There is a commission investigating this. The Parliamentary Commission is now dealing with “Gjallica”. As for assessing this activity, the law grants that authority only to the independent parliamentary commission. Republika: How do you explain the decision by some companies to lower their interest rates? High interest, high risk. Low interest, lower risk. Do you have any information about police action against protesters after their demonstrations? I want to assure you that no Albanian citizen will be detained for having taken part in protests. On the contrary, the right to protest will be fully respected—not the right to destruction and violence. We are witnessing a wave of unjustified destruction. Justice will act without any party bias, completely independently. Destruction is destruction; if you say it should be tolerated, the country may find itself in situations its citizens do not want. RD: Some of the left-wing forces you invited to this roundtable did not attend, but organized another roundtable. What is your view of that meeting? Three of the political forces I invited did not attend. I invited to this roundtable all parties that won 1% or more in local government elections, as well as those with officials in communes and municipalities. I encourage dialogue among all political forces, whether represented fully or partly; it is an entirely normal practice. BLEDI KASMI having rejected it is the worst and most shameless choice a party that wants to be present in the country’s political life could make. It is known that the financial crisis caused by the collapse of the pyramid schemes has been assessed by the Democratic Party government as very serious, and all its efforts, those of Parliament and those of other Albanian state institutions are aimed at mitigating as much as possible the negative financial effects of the collapse of these fraudulent schemes. Yet while the DP and its government are making every effort, offering concrete solutions and ways to ease Albanians’ financial losses, the SP and its allies exploited people’s despair to lead a whole wave of destruction and unrest. Support The Democratic Party and the other parties, together with the trade unions that accepted President Berisha’s invitation to take part in the roundtable discussion on mitigating the negative financial effects of the collapse of the pyramid schemes, as well as ways to overcome the difficulties facing some usury companies with productive activities, expressed their views on how to overcome the usury crisis. By refusing the invitation to dialogue, the Socialists once again revealed their role in inspiring and directing the destruction and vandalism of the previous week, as well as their determination to pursue the Leninist political path of intolerance, intransigence, cynicism and abuse of people’s misfortune. It is characteristic of Leninist-style parties to draw their greatest inspiration for terrorist acts from their people’s misfortunes. It is equally well known, however, that Albanians have definitively rejected this kind of politics and this party from their social life. The former communists’ failure to attend the meeting called by the President of the Republic is unlikely to harm anyone except these pitiful parties, which have been removed from institutional politics by the free vote and, having chosen the political boycott as a way to stay alive, are now setting a precedent of boycotting by exploiting Albanians’ financial misfortune and returning definitively to their origins: the path by which they can lay claim to power. Meanwhile, the rallies they called in recent days in Durrës, Lezhë and several other districts proved that no one follows them even in the streets. Yesterday, President Berisha invited to a meeting at the Presidency the ten political parties represented in Parliament or governing municipalities, communes and districts, or that had won more than 1% in local government. He also invited the country’s three largest trade unions. The meeting was attended by the leaders and representatives of the Democratic Party, the Republican Party, the Union for Human Rights Party, the National Front Party, the Social Democratic Union Party, the Legality Movement Party, as well as the Union of Independent Trade Unions of Albania and the Independent Miners’ Union. Representatives of the Socialist Party, the Social Democratic Party and the Democratic Alliance Party, as well as the representative of the former-communist Trade Union Confederation, refused to attend. At the meeting, after discussing the situation at length, the political forces called for: 1. No measures to be taken that exceed the state’s real capabilities; inflation must not be increased, meaning that money must not be printed and one calamity must not be remedied by causing others. 2. The state and government to establish a series of measures to assist the worst-affected families, and families who have left their homes for these pyramid schemes to be treated as sound borrowers and given credit. 3. Full transparency to be established in all actions concerning these companies. 4. Investors’ representatives to be included in the government commission. 5. Companies to adjust wages, give up their luxuries and engage in dialogue with their investors. 6. The “Gjallica” company to be transformed into a joint-stock company run by its shareholders, and a state envoy to handle its problems. 7. The law to be enforced with the greatest rigor, and the protection of property and individual life to be guaranteed with the full force of the law and the institutions. 8. The judiciary to independently determine the legal responsibility of the organizers and perpetrators of last week’s arson and destruction. Afterward, President Berisha met with journalists and answered their questions about the political roundtable’s proceedings and other issues concerning the borrowing companies and firms. At the outset, President Berisha expressed regret that the left-wing political forces had not attended this consultation. “I thought,” the President said, “that dialogue, participation in it, the exchange of views and the presentation of positions are the way out of conspiracy, the way to participate in democracy, and the way to increase the role of every political force. I believe that, in dealing with this financial crisis, the left-wing parties have chosen a very wrong position. First and foremost, this is against their own direct interests and those of their membership. They rely, or have relied, on certain groups that do not expand these forces but diminish them. To manipulate and support a group of activists and fanatics who have not put a single penny into the pyramid foundations, but who think that, for their political purposes, power can be overthrown by any means, is a very wrong and unacceptable practice. is a very wrong choice. These elements thought that the basic elements of their services could overthrow [the government] by any means; this is a very wrong and unacceptable practice. is a very wrong choice. These elements thought that [text unclear/cut off] could be overthrown practice.” means; this is a very wrong and unacceptable practice. BBC: Has a figure been announced showing how much citizens will be compensated by the “Xhaferi” foundation? The coefficient for the “Xhaferi” foundation will be announced this afternoon because the government commission has decided to carry out duplicate checks, since the number of receipts was around one million and some. This is not the number of investors, which is much smaller, but the number of receipts was very large. I think this is a wise decision. AFP: What appeal would you make to Albanian citizens? Once again, I appeal to Albanian citizens to remain calm and have complete faith in free enterprise, and in the government’s commitment to support it. Yesterday’s decision by the Albanian parliament to set the profit tax at 10%, down from 20%, is an enormously important boost for all those Albanians who want to invest and build wealth through their honest businesses. What views were expressed at this meeting regarding compensation for creditors by these companies? There were opposing views. Some proposed granting concessions by applying the concessions law in specific areas. Others suggested completing the projects begun by these companies and exploring lending opportunities in the interests of investors. Views differed, and they will be conveyed to the government. Republika: Will people receive money tomorrow, or passbooks? People will receive money today and tomorrow. The passbook is a means of getting your money much faster. People will necessarily receive their money in turn. There will be no queues. Those who go to the bank today to get a passbook will be able to withdraw their money two hours later, because at that point they will sever their connection with the foundation that deposited the money and establish a direct relationship with the bank. It has been suggested that the state is unable to pay and is therefore offering passbooks. No, gentlemen. The state has every means to meet its obligations to citizens, apart from the time factor. Those who do not wish to wait until their name comes up should go and get a passbook this morning so they can receive their money at noon. KJ: Some opposition parties did not attend the meeting you initiated, saying it was too late and that you should have called it sooner. What is your view?

A Forum where communists have joined forces with former victims of communism, and where Çeka and Islami have allowed Kurt Kola to be No. 1 Page 3

The Savings Bank begins distributing the frozen funds of the former “Populli” Foundation Page 2