Albanian Telegraphic Agency (ATA), 97-02-04

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From: The Albanian Telegraphic Agency (ATA) Home Page at <http://www.telpress.it/ata>

Albanian Telegraphic Agency

CONTENTS

[01] TIRANA COURT CHAIRMAN ABOUT PROBLEMS OF THE GJALLICA COMPANY

[02] OPPOSITION CONTINUES TO BOYCOTT PARTIES ROUND TABLE DISCUSSION

[03] ANNUAL INTEREST RATE FOR DEPOSITORS IN INVESTING COMPANIES TO BE 36%

[04] PRESS REVIEW

[05] COEFFICIENT OF MONEY TO BE REIMBURSED TO "POPULLI" FOUNDATION CREDITORS DEFINED

[06] BERISHA HOLDS ROUND TABLE WITH POLITICAL PARTIES TO COME OUT OF SITUATION CREATED

[07] ITALIAN CHICKEN LEGS AND GERMAN CHEESE ARE DITCHED

[08] PERCENTAGE OF DEPOSITS TO BE TAKEN BY CREDITORS OF XHAFERRI FOUNDATION DECLARED

[09] FORUM FOR DEMOCRACY PROPOSES TECHNIC GOVERNMENT TO SOLVE CRISIS OF USURIES

[10] PRESIDENT OF POPULLI FOUNDATION APPEARS BEFORE TIRANA COURT

[11] DISTRIBUTION OF MONEY OF "POPULLI" FOUNDATION STARTS

[12] REPRESENATIVES OF POLITICAL FORCES DISCUSS WITH PRESIDENT IN ROUND TABLE

[13] GJALLICA CREDITORS WILL NOT TAKE THEIR MONEY ON FEBRUARY 6TH

[01] TIRANA COURT CHAIRMAN ABOUT PROBLEMS OF THE GJALLICA COMPANY

"The Tirana court is ready to start, according to the law, the procedures of bankruptcy for this firm. We are ready to accept the demand for the bankruptcy of this company if creditors of this company demand this through their indictments for this firm's bankruptcy," said Gjonaj to ATA.

The law on the procedure of bankruptcy, as a process known and followed in all the countries, is prepared with technical assistance of a group of German specialists.

In the judicial aspect, this company has deposited in a trade registration its assets, some valuable objects. From the judicial point of view, Gjallica has followed regular procedures for the trade registration of its assets, the Tirana court sources say.

On the basis of the denunciation by leaders of the company Gjallica, on December 30, 1996, the prosecutor's office of Vlora has started penal prosecution for the chairman of the finance branch of this company, Hysni Brasha, now arrested, for the crime of fraud and abuse of assets. While investigating into the matter, the prosecutor decided that all the documentation of the company be sequestered to be examined by specialists. ake/eva/xh/Z/

Albanian Telegraphic Agency

[02] OPPOSITION CONTINUES TO BOYCOTT PARTIES ROUND TABLE DISCUSSION

"The Socialist Party is for a political solution of the crisis and this asks first of all the resignation of the government," says a SP communique yesterday.

The socialists refuse this table because, as the SP Secretary General Rexhep Mejdani and the Secretary for public relations of SP, Pandeli Majko said in today's meeting of the Forum for Democracy, "they do not agree to discuss a solution only for the economic situation."

In the mean time, Skender Gjinushi, chairman of the Social Democratic Party, the other left opposition party, refused the invitation of the president under the pretext that "this is a political manoeuvre of Berisha."

Together with some minor right parties and the national association of the formerly politically persecuted, these parties have created a grouping called "Forum for Democracy."

"We decided in a meeting today not to take part in the president's round table. We do not know any other table besides that of the seven parties and the association. Let them come to us if they would like it," said in a meeting today the chairman of the Association of the formerly politically persecuted and chairman of the Forum for Democracy, Kurt Kola.

President of Albania Sali Berisha has summoned in a round table discussion 20 political parties to discuss the question created after the collapse of some pyramid schemes and the way of how to come out of this difficult situation for Albanians.

SP, which after the creation of this situation, demanded that a round table be held among the parties, did not agree to take part in the round table talk held by the President some days ago.

Right after the collapse of some firms, which through fraud had made thousands of people deposit their savings by promising them very high monthly interest rates, from 35-100 per cent, and which were based on pyramid schemes, the left opposition tried to politicize the matter and immediately made public its political demands, which, according to it, "would make possible the solution to the crisis."

The main demands of the left opposition and of the Forum for Democracy, approved in today's meeting of this forum, are "the withdrawal of the government, the creation of a technical government, conduct of new parliamentary elections and defining of the conditions for the preparation of the constitution."

These demands have not been supported by the European governments and political forces.

The right wing parties and another association of the formerly politically persecuted denounced on Friday the cooperation of Kurt Kola with the SP (former communist party). These forces accused Kola of flirting with the communists and the former Sigurimi. They said that "this act shows that Mr. Kola, has nothing in common with the right wing forces."

With the aim to realise its political demands, the opposition organised protests in Albania's cities and towns, in which activists and militants in several ctities, speculating with the disaster, set to fire and destroyed many state and public institutions, causing a damage worth some 50 million dollars and creating panic and fear among the people.

Meanwhile, the Albanian government has frozen the deposits of two foundations, "Xhaferri" and "Populli", which amount to over 300 million dollars, and has fixed the date of February 5 to begin the distribution of the money to the creditors of these foundations. kled/xh/lm/Z/

Albanian Telegraphic Agency

[03] ANNUAL INTEREST RATE FOR DEPOSITORS IN INVESTING COMPANIES TO BE 36%

As regards deposits in foreign currency the interest rates will be calculated every month, providing the depositors with an interest rate based on inflation. For February this interest rate will be 2.5 per cent.

This was agreed upon in the meeting among the four presidents of the Albanian investing companies, VEFA, "Cenaj & Co", "Silva" and "Kamberi", which will cooperate according to a joint strategy.

In the joint statement was unanimously signed by presidents Vehbi Alimuca (VEFA), Pellumb Shehaj (Silva), Ferdinant Kamberi (Kamberi) and Lefter Cenaj (Cenaj & Co), who agree to implement the same norm of interest, to reduce non productive expenditure, to liquidate the creditors and create the financial union with joint financial contribution as a guarantee for the depositors and as a precondition to license the first private bank with an entirely Albanian capital.

The paper says that the four presidents call on the Albanian banks, the Finance Ministry as well as the representative offices of the international financial institutions attached to Albania to contribute to the conversion of companies to first participants in the Tirana stock-exchange. kled/lm/sh/

Albanian Telegraphic Agency

[04] PRESS REVIEW

Zeri i popullit today publishes a statement of the Presidency of the SPA entitled "SPA refuses to take part in the round tables which do not aim to give a real solution to serious problems." The paper carries an article entitled "The opposition against demagogic talks." The paper carries an article "Opposition against demagogic tables." It also publishes the article "The crisis of pyramid schemes - part of the general crisis in the country and the article "Shqiponja (according to the paper, a DP firm) is involved in fuel smuggling." ZP carries an article "Government is finding fraudulent solutions."

Republika carries the editorial "Albanians in a state of uniforms." Another article says that the reports of the Institute of Statistics show of a striking servility towards DP."

Albanian today publishes an editorial entitled "Opposition endangered by pyramid schemes." The paper also carries exclusively the full lists of the points where the money will be distributed to investors. The paper has an editorial "Leftists against the solution to the question of pyramid schemes." In the article "Italian film producer Amelio - witness of a phantom history," the paper criticizes the film by this producer about Albania, entitled "L'America."

Today's editorial in Koha Jone writes about the imprisonment of a reporter of this paper, R Beqiraj. Under the headline "Government fixes the criteria for the distribution of the money of foundation Populli," the paper writes "Only 60 per cent of the deposits for investors in Populli." The paper has also an article under the title "Today, the President invites political parties in a round table for the collapse of pyramid schemes," but the opposition refuses to be manipulated, writes the paper.

Dita Informacion writes "SP refuses the invitation of Berisha," and "Xhaferri (President of foundation Xhaferri and Driza president of foundation Populli) sign for the money deposits."

Rilindja writes in an editorial for the burial of 2 victims of the Serb violence in Kosova, named Z Pajaziti and H Zejnullahu. Under the title "Support for any peaceful solution," the paper writes that the prime minister of the Republic of Kosova completed his visit to the U.S.

Gazeta Shqiptare carries an editorial entitled "Why is the film 'L'America' shown on TV now?" The paper writes "Police closes offices of Gjallica." The paper carries the article "Berisha invites the parties: What shall we do with pyramid schemes?" jz/xh/e

Albanian Telegraphic Agency

[05] COEFFICIENT OF MONEY TO BE REIMBURSED TO "POPULLI" FOUNDATION CREDITORS DEFINED

The examination of the documentation resulted as follows: The total sum of the bank assets frozen in the bank, as well as those coming later from the sequestrations on account of this foundation is 10.2 billion leks. The total sum owed to the creditors is 17 billion leks.

Based on the aforesaid data the commission decided: 1. The coefficient of the money to be repaid to the creditors is 0.6 or 60 per cent.

2. The Savings Bank is charged with distributing the amounts from the accounts of this foundation, according to the coefficient of point 1 of this decision. s.sh/kled/lm/E

Albanian Telegraphic Agency

[06] BERISHA HOLDS ROUND TABLE WITH POLITICAL PARTIES TO COME OUT OF SITUATION CREATED

Following the meeting Berisha told the press that: "The political forces, which took part in this round table, together with the trade unions, expressed the following views: Firstly, the government measures should not exceed the real possibilities of the state, inflationary measures should not be accepted and adopted, money should not be printed and this disaster should not be allowed to be followed by another.

Secondly, the political forces and trade unions demanded that the state and government determine a series of concrete measures to help the families mostly affected by the loss of their money in pyramid schemes.

They provided opinions that those who have left their houses in these schemes, should be treated as homeless and the state should help lessen their sufferings and problem.

The participants asked that full transparence be shown in all the acts regarding these companies, that the government commission be also composed of the investors' representatives.

They also insisted on the acceleration of privatisation, the economic reform as the sure and successful way to resolve and overcome the difficulties created".

The participants also discussed the issue of the "Gjallica" company, whose assets and documentation are in the prosecutor's office.

Berisha said that "speakers in the meeting voiced the idea that all its assets be turned into a shareholding company, with investors as shareholders and the state must appoint an envoy to declare the measures that the state may adopt to contribute to the increase of the profit in the units where 'Gjallica' has its investments."

The parties asked a strict observation of the law, especially with regard to the protection of the institutions, the public property and the civil life.

"They denounced the manipulation by set political forces of the violence and expressed the idea that judiciaries should independently implement the law towards the organizers, executors, ruiners," said Berisha.

Three parties of the left opposition, SP, SDP and DAP as well as the Trade Union Confederation, which were invited in the meeting, did not take part.

"I think that the dialogue, the participation in it, the exchange of opinions and presentation of ideas consist the road which contributes to democracy, the road which leads to a greater role of any political force. I am of the opinion that with regard to this financial crisis created by the collapse of pyramid schemes, the left wing parties have adopted a very wrong attitude. For their direct interests, they have resorted, first of all, to set groups, which do not increase but reduce the importance of these forces."

Then Berisha spoke on other questions related to the government measures for the distribution of the frozen bank assets to investors. jz/lm/xh/E

Albanian Telegraphic Agency

[07] ITALIAN CHICKEN LEGS AND GERMAN CHEESE ARE DITCHED

"After the analyses of the Institute of Veterinary Researches (IKV), the above mentioned quantity has expired and cannot be eaten", said the director of this directory, Astrit Coku.

He added that the businessmen lose only the quantity we ditch and do not allow it to be sold. /eva/mt/k

Albanian Telegraphic Agency

[08] PERCENTAGE OF DEPOSITS TO BE TAKEN BY CREDITORS OF XHAFERRI FOUNDATION DECLARED

As Premier press office reports, this commission, led by Albanian Premier Aleksander Meksi, came to the conclusion after examining the documentation presented by the group of countable experts, based on the countable financial documentation of the foundation.

The National Commercial Bank, which will distribute the bank assets of the above mentioned foundation, will publish on tomorrow's press the number of deposit-mandates according to the chronological order set by the foundation "People's Democracy Xhaferri" and according to the affiliates of this foundation and offices of the National Commercial Bank in Tirana and districts, where they will be distributed.

The Special Government Commission declared on Monday that each creditor of the "Populli" foundation will take 60 % of the deposit.

The distribution will start on February 5, 1997. /a.ke/kei/mt/k

Albanian Telegraphic Agency

[09] FORUM FOR DEMOCRACY PROPOSES TECHNIC GOVERNMENT TO SOLVE CRISIS OF USURIES

Asked about the preference of the participation of parties in this forum, its leaders have declared that they do not have any preferences.

"We see as an indispensability the presence of the Democratic Party in the round table, which is the party in power", said Kurt Kola, one of the leaders of this forum, which does not have any constitutional function.

The opposition parties which made up this forum, the Socialist Party, the Social Democratic Party, the Democratic Alliance Party, the National Unity, the Agrarian Party (left wing), the Right Democratic Party, the Right Republican Party, the Democratic Ideal (right wing), as well as the confederation of the left trade unions refuse to participate in a round table called by the Albanian President.

The leaders of this forum have declared that they will continue to support the peaceful protests.

"We want a political solution even if all the money are distributed", said the other leader, Daut Gumeni.

While being asked on how will the technic government, proposed by them solve the problem of distributing the money to the people, the leaders of the meeting avoided it.

The forum accused the police of exercising violent acts during the protests of people after the collapse of pyramid schemes, but did not denounce directly the persons who have committed acts of violence in the demonstrations led in most of the cases by the opposition. /kei/mt/k

Albanian Telegraphic Agency

[10] PRESIDENT OF POPULLI FOUNDATION APPEARS BEFORE TIRANA COURT

According to the government jurist Vasil Bendo, Driza has changed the direction of his foundation from charity foundation into loan-taking based on a fraudulent pyramid scheme.

The appeal court examined on the same day the charge presented by the National Information Service (NIS) in March last year against Xhaferri foundation, accused of fraudulence, which was rejected by the court.

The Special Government Commission, established for the distribution of the assets of the loan-taking foundations, which have exercised their activity on the basis of pyramid schemes, has declared that each creditor of Populli foundation will receive 60 % of the deposit, while each creditor of "People's Democracy Xhaferri" foundation will take 52 % of the deposit.

The distribution of money of Populli foundation started on Tuesday in several districts of Albania in the offices of the savings banks, while the distribution of money of Xhaferri foundation will start on February 5th in the offices of the National Commercial Bank. /kei/mt/k

Albanian Telegraphic Agency

[11] DISTRIBUTION OF MONEY OF "POPULLI" FOUNDATION STARTS

In the offices of the Shkodra Savings Bank started on the same day the distribution of money of "Populli" foundation.

The offices of the National Commercial Bank will start Wednesday the distribution of money of "Xhaferri" foundation, whose creditors will take 52 per cent of the deposit. /a.ke/kei/mt/k

Albanian Telegraphic Agency

[12] REPRESENATIVES OF POLITICAL FORCES DISCUSS WITH PRESIDENT IN ROUND TABLE

During the meeting, the Trade Unions' representatives said that "this is an economic problem and demands an economic solution".

In his address, the Chairman of Democratic Party Tritan Shehu spoke on the responsibilities and the role of all the Albanian political forces to perserve the economic stability of the country. He also condemned the political forces which have chosen the way of violence and destruvtion for the solution of this problem.

The deputy chairman of the National Front Party (Balli Kombetar), Hysen Selfo said that "we are the real right force in Albania" and rejected any alliance with the left forces, especially with the Socialist Party. This Party and the Legalitet Movement Party, which forms the political grouping "Albanian United Right", asked the government to control the loan- taking companies with producing activity and investments.

The Chairman the Republican Party, Sabri Godo said that "transparency is a condition of priority for the solution of the crisis" and expressed his concern to solve this situation to the goood of citizens. Concluding, Godo said that "the fraudelence by usuries is over now. We have to return to work".

The Chairman of the Christian-Democratic Party, Zef Bushati condemned the efforts of the right extreme forces to manipulate this disaster, while the Chairman of the Social-Democratic Union Party, Teodor Laco asked for a rigorous implementation of the law for the organizators of violence, who set fire and destroyed.

The left opposition parties, Socialist Party, Social-Democratic Party and the Democratic Alliance Party didn't join this meeting, as well as the Confederation of the Trade Unions. /kei/

Albanian Telegraphic Agency

[13] GJALLICA CREDITORS WILL NOT TAKE THEIR MONEY ON FEBRUARY 6TH

Gerxhalliu declared that "with the financial situation of the company, he is not able to open the offices and give money to the creditors", because despite of the efforts of the company, nothing was concluded.

"All the capital investments of the company will be put into the disposal of repaying the obligations towards the creditors according to the possibilities to be created in the future", he said.

Gerxhalliu did not declare any fixed date in which he will start to distribute the money, but only repeated that " he will make efforts to put into the disposal of creditors all the assets of the company".

Over the last weeks of December it was reported that 40 million dollars disappeared and some days later Gjallica began to experience ruin.

Gjallica interrupted the distribution of returns on December 20th last year.

On January 24th this year, the Court of Vlora district declared the beginning of procedure of Gjallica's failure.

Meanwhile, ATA correspondent in Gjirokastra reports that 6 creditors of Gjallica company, who had deposited amounts from 10.000 to 20 000 dollars in this company, have brought an action against it near the court of the district for the return of these amounts. /a.ke/kei/mt/k

Albanian Telegraphic Agency

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