Identifier
Created
Classification
Origin
08TIRANA496
2008-07-03 15:12:00
UNCLASSIFIED
Embassy Tirana
Cable title:
THIS WEEK IN ALBANIA, JUNE 28 - JULY 3, 2008
how-toP 031512Z JUL 08 FM AMEMBASSY TIRANA TO SECSTATE WASHDC PRIORITY 7228 INFO EUROPEAN POLITICAL COLLECTIVE
UNCLAS TIRANA 000496
DEPT FOR EUR/SCE
E.O. 12958: N/A
TAGS: PGOV PREL ECON AL
SUBJECT: THIS WEEK IN ALBANIA, JUNE 28 - JULY 3, 2008
UNCLAS TIRANA 000496
DEPT FOR EUR/SCE
E.O. 12958: N/A
TAGS: PGOV PREL ECON AL
SUBJECT: THIS WEEK IN ALBANIA, JUNE 28 - JULY 3, 2008
1. The following is a weekly report prepared by Embassy Tirana's
local staff to provide political and economic context and insight
into developments in Albania.
--------------
CRIMINAL JUSTICE DEVELOPMETNS
--------------
2. NOTORIOUS CRIME GANG TRIAL FINALLY ENDS: The Serious Crimes
Court wrapped up the longest criminal trial in the history of
Albania's legal system and sentenced ten members of the so-called
"Revenge for Justice" criminal organization to prison. The two
leaders of the organization were sentenced to life imprisonment
while other member's sentences ranged from ten years to 25 years in
prison. This put an end to a trial that has been dragging on since
1996 due to political instability, gang intimidation, and the
complexity of the case. The members of the organization were
charged with crimes ranging from terrorist attacks, murder of a
prison director, bank thefts, burglaries, kidnappings, and a whole
slew of minor criminal offences.
3. Unfortunately, only two members of the criminal organization
were in Albania for the sentencing. The two main leaders of the
gang currently enjoy political asylum in Switzerland and are not
expected to serve prison any time soon. All other members were
tried in absentia. The decision of the court, however late, is a
welcomed development in bringing the most dangerous members of this
organization to justice.
--------------
ECONOMIC DEVELOPMENTS
--------------
4. A NEW ERA FOR THE INSURANCE SECTOR: The Ministry of Finance has
drafted a new law for the insurance sector which will increase the
number of business sectors required to purchase liability insurance
for third-parties. This was done in an attempt to further boost the
insurance market in Albania. The new law was drafted within the
framework of a series of reforms to accelerate the Euro-Atlantic
integration process. Beyond these recent amendments, there are few
changes to the legal framework governing this sector since its
creation in 1992. This new law, which adopts new standards for
liability insurance, aims to better regulate the market, increase
the number of businesses required to purchase insurance and improve
protection of consumers, clients, and employees.
5. The insurance market in Albania has struggled to gain momentum
since its emergence in 1991. Insurance was a concept completely
foreign to Albanians who had no use for such a service under the
communist regime. The industry, however, has slowly grown and has
become a more important part of the financial sector.
6. In 2007, the collection of insurance premiums increased by 30
percent compared to the previous year. The market, however, still
has not achieved full capacity. With just 25 dollars of insurance
premiums per capita, Albania ranks last in the region; but the
potential for more business and large profits has not gone
unnoticed. Three foreign companies, two from Austria and one from
Greece, have purchased shares in Albanian insurance companies.
These newest investments, together with investments made by the
EBRD/IFC, now account for one third of total sector assets. Their
presence will not only increase capital, but more importantly will
help to apply western standards and improve client services.
--------------
CULTURAL DEVELOPMENTS
--------------
7. TIRANA BEERFEST '08: Thousands turned out to celebrate the 2nd
Annual Tirana Beerfest held this past weekend at Tirana City Park.
The three-day affair began early each day and went full force into
the wee hours of the morning. Beer makers NORGA, KOAN, STELA, and
KORCA came from all over Albania to promote their brews and please
the crowds eager to throw back a few in the middle of the
stifling-hot Tirana summer. Families and friends relaxed on rows
and rows of picnic tables set up under an enormous rainbow-colored
tent, while a series of bands and lip sinkers took to the stage.
The late-night crowd got rowdy when traditional Albanian music began
livening things up, and picnic tables buckled under the weight of
cheerful dancers. Participants enjoyed the cheapest beers in town
(only 50 Lek a piece),and sufllaqe, qofte, and sausage sandwiches
were abundant.
--------------
QUOTE OF THE WEEK
--------------
8. "I spend what little free time I have left in Switzerland biking
and skiing." --Orik Shyti, notorious member of the "Revenge for
Justice" criminal gang currently in asylum.
WITHERS
DEPT FOR EUR/SCE
E.O. 12958: N/A
TAGS: PGOV PREL ECON AL
SUBJECT: THIS WEEK IN ALBANIA, JUNE 28 - JULY 3, 2008
1. The following is a weekly report prepared by Embassy Tirana's
local staff to provide political and economic context and insight
into developments in Albania.
--------------
CRIMINAL JUSTICE DEVELOPMETNS
--------------
2. NOTORIOUS CRIME GANG TRIAL FINALLY ENDS: The Serious Crimes
Court wrapped up the longest criminal trial in the history of
Albania's legal system and sentenced ten members of the so-called
"Revenge for Justice" criminal organization to prison. The two
leaders of the organization were sentenced to life imprisonment
while other member's sentences ranged from ten years to 25 years in
prison. This put an end to a trial that has been dragging on since
1996 due to political instability, gang intimidation, and the
complexity of the case. The members of the organization were
charged with crimes ranging from terrorist attacks, murder of a
prison director, bank thefts, burglaries, kidnappings, and a whole
slew of minor criminal offences.
3. Unfortunately, only two members of the criminal organization
were in Albania for the sentencing. The two main leaders of the
gang currently enjoy political asylum in Switzerland and are not
expected to serve prison any time soon. All other members were
tried in absentia. The decision of the court, however late, is a
welcomed development in bringing the most dangerous members of this
organization to justice.
--------------
ECONOMIC DEVELOPMENTS
--------------
4. A NEW ERA FOR THE INSURANCE SECTOR: The Ministry of Finance has
drafted a new law for the insurance sector which will increase the
number of business sectors required to purchase liability insurance
for third-parties. This was done in an attempt to further boost the
insurance market in Albania. The new law was drafted within the
framework of a series of reforms to accelerate the Euro-Atlantic
integration process. Beyond these recent amendments, there are few
changes to the legal framework governing this sector since its
creation in 1992. This new law, which adopts new standards for
liability insurance, aims to better regulate the market, increase
the number of businesses required to purchase insurance and improve
protection of consumers, clients, and employees.
5. The insurance market in Albania has struggled to gain momentum
since its emergence in 1991. Insurance was a concept completely
foreign to Albanians who had no use for such a service under the
communist regime. The industry, however, has slowly grown and has
become a more important part of the financial sector.
6. In 2007, the collection of insurance premiums increased by 30
percent compared to the previous year. The market, however, still
has not achieved full capacity. With just 25 dollars of insurance
premiums per capita, Albania ranks last in the region; but the
potential for more business and large profits has not gone
unnoticed. Three foreign companies, two from Austria and one from
Greece, have purchased shares in Albanian insurance companies.
These newest investments, together with investments made by the
EBRD/IFC, now account for one third of total sector assets. Their
presence will not only increase capital, but more importantly will
help to apply western standards and improve client services.
--------------
CULTURAL DEVELOPMENTS
--------------
7. TIRANA BEERFEST '08: Thousands turned out to celebrate the 2nd
Annual Tirana Beerfest held this past weekend at Tirana City Park.
The three-day affair began early each day and went full force into
the wee hours of the morning. Beer makers NORGA, KOAN, STELA, and
KORCA came from all over Albania to promote their brews and please
the crowds eager to throw back a few in the middle of the
stifling-hot Tirana summer. Families and friends relaxed on rows
and rows of picnic tables set up under an enormous rainbow-colored
tent, while a series of bands and lip sinkers took to the stage.
The late-night crowd got rowdy when traditional Albanian music began
livening things up, and picnic tables buckled under the weight of
cheerful dancers. Participants enjoyed the cheapest beers in town
(only 50 Lek a piece),and sufllaqe, qofte, and sausage sandwiches
were abundant.
--------------
QUOTE OF THE WEEK
--------------
8. "I spend what little free time I have left in Switzerland biking
and skiing." --Orik Shyti, notorious member of the "Revenge for
Justice" criminal gang currently in asylum.
WITHERS