- Title: ALBANIA: STATE BANK TRIES TO STABILISE LEK
- Date: 31st January 1997
- Summary: TIRANA, ALBANIA (JANUARY 31, 1997) (RTV - ACCESS ALL) 1. SV/LV UNOFFICIAL MONEY MARKET IN MAIN SQUARE/ PEOPLE COUNTING MONEY (6 SHOTS) 0.24 2. LV/SV EXT PRESIDENTIAL PALACE (2 SHOTS) 0.29 3. SV ALBANIAN PRESIDENT SALI BERISHA SAYING "I WON'T DENY THERE IS A SLIGHT FINANCIAL FEVER BUT AT THE SAME TIME WE PROMISED TO THE INVESTERS TO GIVE BACK ALL FROZEN MONEY WHICH IS IN OUR BANKS" (ENGLISH) 0.50 4. SCU BERISHA SAYING "NEVER, NEVER WILL I GIVE UP POWER. I AM ALWAYS FOR POLITICAL SOLUTIONS AND I CAN PROVIDED POLITICAL SOLUTIONS IN ALL DIFFICULTIES WE FACE" (ENGLISH) 1.11 5. SV INTERVIEW WITH BERISHA 1.14 6. LV EXTERIOR SHOE SHOP 1.19 7. SV INTERIORS OF SHOP (4 SHOTS) 1.34 8. SCU OWNER MARTIN LAZARI SAYING THE PYRAMIDS ARE THE MAIN PROBLEM. PEOPLE WHO HAVE MONEY (IN THE PYRAMIDS) ARE UNSURE BECAUSE THEY DON'T KNOW WHAT WILL HAPPEN IN THE FUTURE (ENGLISH) 1.46 9. SV INTERIOR OF SHOP (2 SHOTS) 1.53 10. SV/CU PEOPLE SELLING UNITED STATES VISA APPLICATIONS (3 SHOTS) 2.12 Initials s3, p3 Script is copyright Reuters Limited. All rights reserved.
- Embargoed: 15th February 1997 12:00
- Keywords:
- Location: TIRANA, ALBANIA
- City:
- Country: Albania
- Reuters ID: LVA172A2BPKPJYSQ7LLDUSQMUMP3
- Story Text: INTRO: The Albanian Lek is taking a beating in Tirana's thriving, open-air money market as people rush to buy dollars following the disintegration of once popular pyramid investment schemes.
With the Albanian Lek down 30 percent since the start of the year, state banks have introduced tight foreign exchange curbs and even the crowds of money dealers in Tirana's unofficial street market are reluctant to sell hard currencies.
The official bank rate was around 125 Lek to the U.S. dollar on Friday (January 31) but only tiny transactions were being allowed in Tirana's state bank.
Economists believe more than 1 billion dollars U.S. is tied up in the pyramids, which started to fail at the end of last year, leaving many people in Europe's poorest country facing ruin.
Albania's President Sali Berisha on Friday admitted there was "a slight financial fever in the country". He said the government was suspending the printing of new Leks in a bid to control inflation.
But he added that he did not fear loosing his presidential power over the current economic crisis, claiming: "I have always provided the people with political solutions." Shoe shop owner Martin Lazari, who charges between 35 and 40 dollars U.S. for a pair of shoes, said he has suffered very badly since the collapse of the pyramid schemes.
Lazari said he now has hardly any customers at all as so many people have put all their savings into pyramids and have no money to spend.
The only people that seem to be doing a roaring trade are the men selling visa application forms for the United States at 50 cents a go. Between 500-700 application forms are sold daily as Albanians search desperately for a way out of the economic crisis engulfing their country.
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