Albanian Rebellion of 1997 The Albanian Rebellion of 1997 , also known as the Albanian Unrest of 1997 ( ) , or the Pyramid Crisis or improperly known as the Albanian Anarchy of 1997 , was an uprising sparked by Ponzi scheme failures . Albania descended into civil disorder s and violence in which the government was toppled and 2 , 000 people were killed . By January 1997 , the inevitable end came , and the people of Albania , who had lost $ 1 . 2 billion ( out of a small population of three million ) , took their protest to the streets . Beginning in February , thousands of citizens launched daily protests demanding reimbursement by the government , which they believed was profiting from the schemes . On 1 March , Prime Minister Aleksandër Meksi resigned and on 2 March , President Sali Berisha declared a state of emergency . On 11 March , the Socialist Party of Albania won a major victory when their leader Bashkim Fino was appointed prime minister . However , the transfer of power did not halt the unrest , as protests spread to northern Albania . Although the government quelled revolts in the north , the ability of the government and military to maintain order began to collapse , especially in the southern half of Albania , which fell under the control of rebels and Socialist forces . All major population centers were engulfed in demonstrations by 13 March and foreign countries began to evacuate their citizens from Albania . These evacuations included Operation Libelle and Operation Silver Wake . The United Nations Security Council , in Resolution 1101 , authorized a force of 7 , 000 on 28 March to direct relief efforts and to restore order to Albania . The UN feared the unrest would spread outside Albania ' s borders and contribute to even more refugees throughout Europe . On 15 April , the 7 , 000 troops launched Operation Sunrise , an Italian - led mission which helped restore rule of law to the country . After the unrest , over three million guns were transported to Kosovo and the guerrilla forces of the ethnic Albanian Kosovo Liberation Army received considerable armament . Causes . In 1992 , the Democratic Party of Albania won the first free elections in Albania , and Sali Berisha became president . In the mid - 1990s , Albania was becoming a liberalized economy after years under a controlled economy . The rudimentary financial system became dominated by Ponzi scheme s , and government officials endorsed a series of pyramid investment funds . By January 1997 , the schemes ( actually fronts for laundering money and arms trafficking ) could no longer make payments . The number of investors who had been lured by the promise of getting rich quick grew to include two - thirds of Albanians . It is estimated that close to $ 1 . 5 billion was invested in companies offering monthly interest rates ranging from 10 to 25 percent , while the average monthly income was around $ 80 . People sold their homes to invest the proceeds , and immigrants working in Greece and Italy transferred additional resources to the schemes back home . Political situation before the Rebellion . On 26 May 1996 , general elections were held , and the Democratic Party won by a large margin . The Socialists accused the government of fraud and rejected the results . PS left the counting process and boycotted the parliament . On 20 October 1996 , local elections were held . The Democratic Party won again ; the Socialists still did not accept the result . The political situation was aggravated , and the country headed towards a multifaceted crisis . Usury . Pyramid schemes , also known as rentier firms , started their operations in 1991 . Their activity was based on obtaining a quantity of money and returning a greater amount based on a percentage . Although apparently functioning as a bank , pyramids had no concrete investment from which to glean money and apparently did not lend . The first pyramid scheme , which opened in 1991 , was that of Hajdin Sejdisë , who later fled to Switzerland with several million dollars of Albanian businessmen . It was followed by Sudja of Maksude Kadëna in 1993 , a Gipsy who had previously worked as a worker in a shoe factory . Then foundations " Populli " run by an opposition politician and " Xhaferri " . By the end of 1996 , pyramid schemes reached their peak . The interest rates that they offered were very tempting ; Sudja managed to provide 100 % interest , which warned of imminent bankruptcy . The reason why the existence of pyramid scheme firms was not criticized earlier was a banking law adopted by the Albanian parliament in 1994 , wich – on International Monetary Fund ( IMF ) advice – contained no provision that the National Bank of Albania act as a supervisor of commercial banks , or of money lending enterprise . The IMF changed its tune two years later , after the consequences of its misjudgments had become obvious . Despite the advice of the IMF to close these schemes , the Albanian democratic government continued to allow their activities , often being involved in and personally profiting from them . In the period between 8 and 16 January 1997 , the vast majority of the pyramid schemes collapsed , taking with them the life savings of Albanians . On 22 January , the government froze the " Xhaferri " and " Populli " firms . Gjallica , another firm , was half bankrupt , while the Vefa firm , which had managed to carry out some investment in the Albanian market in hotels , fuel , and factories , continued normal activity . The social crisis caused by the collapse of the pyramid schemes was arguably the worst in the history of Albania , a history which has often seen the very existence of Albania at risk . The first protest held to resolve the crisis was that of 16 January in the South . On 19 January , Tirana saw a protest of the Sudja creditors . On 24 January , the " de facto " rebellion began . Thousands of people in Lushnja who had lost money marched on the city hall in protest against the government ' s support of the schemes . The protest quickly descended into violence . Police forces were routed , and the city hall and adjoining cinema were burnt . One day later , on 25 January , Tritan Shehu , chairman of the Democratic Party , was sent to Lushnje to resolve the situation ; however , on his arrival , Shehu was held hostage for several hours at City Stadium and assaulted by the protesters . State Special Forces intervened in the city to extract Shehu . In the morning , every government institution in the city was looted , destroyed and burnt down . On 26 and 27 January , violence erupted in other southern towns such as Vlora on the coast . On 30 January , the Forum for Democracy was formed by opposition parties to lead the anti - government protests . The reasons for the protests were originally economic , with nearly every family in Albania having lost money in the pyramid schemes . Naturally , however , anger was also directed against President Sali Berisha and against the government for allowing the schemes to continue despite the advice of the IMF . As allegations grew that Sali Berisha and others in government had personally profited from the schemes , many became convinced that the Democratic Party had to be removed by force . This was especially true in the city of Vlora . On 4 February , distribution of a portion of lost money began at the counters of the National Commercial Bank , owned by the state . Rather than subduing the protests , this action increased people ' s suspicion of government involvement . A check of $ 550 , 000 paid by " Gjallica " firm on 7 January to the Socialist Party accelerated collapse of " Gjallica " . On 5 February , the Gjallica firm declared bankruptcy , and on 6 February violent protests resumed in Vlora . On 9 February , State Police were attacked in Vlora , and a day later , also in the South , fifty Special Force soldiers attacked and brutally dispersed protesters . Hunger strike of students of the University of Vlora . Students of the University of Vlore began a hunger strike on campus on 20 February 1997 with about 50 students joining the movement . Their demands were the resignation of the government and the full return of invested money . This strike is considered by some to have been the main driver of the escalation of the situation into armed conflict . On 22 February the Forum for Democracy declared its support of the strike . Students from Gjirokastër and Elbasan came to give their support . They were then driven by the FRESSH ( Youth Wing of Socialist Party ) activists of Vlorë to Tirana . In contrast were the students of the University " Luigj Gurakuqi " in Shkodra , whose Students Union declared : " The students share the pain of the citizens of Vlora in losing money in pyramid schemes , but on the other hand , think that freedom and democracy , homeland and nation have a higher price " . On 26 February thousands of people surrounded the building of the University to defend from feared attack by The National Intelligence Service SHIK ( Shërbimi Informativ Kombëtar ) . The same day a group of strikers requested more medical help , raising doubts about the group of doctors near them . On 27 February in Vlora Shkodra , mayor Bahri Borici of the United Right , declared his support for the hunger strike . 28 February 1997 was a decisive moment in the history of Albania . After strengthening their perimeter around the building of the university , the rebel forces , without warning , attacked SHIK building . In fighting between the rebels and government forces , nine people were left dead – six officers and three civilians . The killings of 28 February marked the start of a ten day Civil War and the prosecution of violence in southern Albania for about a year . Ten - day civil war . Demonstrators would never have succeeded in overpowering the forces of police in Vlora , if they had not been armed and organized by a combination of local mafia bosses dismayed about their financial losses in pyramid schemes and former members of the communist - era secret police Sigurimi who saw this as their chance to take revenge on the new political system . Typical of the latter was Albert Shyti , who returned from Greece with an impressive private arsenal and set himself up as the head of the Vlora " Committee of Public Salvation " – a pattern replicated in several other towns and cities in southern Albania . Opening of the depots . The " Opening of the depots " ( ) was the opening of the weapon depots in the north , for the protecting against the violence of the south . The decision was taken by Sali Berisha . When in southern Albania the army bases were looted , it was estimated that , on average , every male from the age of ten upwards possessed at least one ﬁrearm and ample ammunition . In order to protect the civilians in the north and central Albania , the government allowed the opening of the depots for the population of those areas too . During the rebellion 656 , 000 weapons of various types , along with 1 . 5 billion rounds of ammunition , 3 . 5 million hand grenades , and 1 million land mines were looted from army depots . International intervention . On 28 March the United Nations adopted Resolution 1101 for humanitarian aid to Albania and on 15 April Operation Alba forces began to arrive in Albania . About 7 , 000 soldiers in the multinational Italian - led UN mission came to Albania to restore order and rule of law . The first forces were deployed in Durrës . Normality returned to Tirana . 29 June Snap Elections . Under a tense atmosphere developed campaigns for elections . Democrat leadership is unable to develop a normal campaign in areas of southern Albania . On the other hand , Left leaders accompanied by " kapobandat " of these cities , leaving behind a tragic balance . More than 60 people were killed during the campaign of the Socialist Party in the south . On 29 June 1997 held early parliamentary elections . Socialist Party allies are winning . Democrats suffer a deeper loss in their history . In Tirana , where it was thought that DP would win , the result is quite different after the Socialists won convincingly . Many of the members of the " Rescue Committee " came out of left forces candidates to publicly though they promised they would not get any government position without resolving the crisis of usury . On the same day also held a referendum on the form of governance . With 65 % of the votes wins the Republic against the monarchy . Consequences of the crisis . Balance of rebellion is 200 million dollars and material damage and killed over 3700 to 5000 wounded . Lawsuits were filed against the bosses of firms rentier . Was sentenced in absentia a part of the major figures in the government of the Democratic State : Safet Zhulali , Agim Shehu , etc . Gazidede Union . " Kapobandave " began legal proceedings against the cities of southern Albania . The country ' s economy was completely destroyed . North - South conflict . One of the main themes of Western media and analysts during the March riots was the North - South division . Various newspapers and TV stations claimed that the rebellion but a showdown between the two main political forces in the country , was also a clash between the northern ( Ghegs ) that supported Sali Berisha and southern ( Tosk ) that supported the Socialist Party leadership its ( mostly Tosk ) . Gangs . Taking advantage of difficult situations , criminal groups were armed , and in an unexpected way were placed in charge of rebellion and took control of entire cities . Most had been imprisoned in the main prisons in Greece , and suddenly were able to escape and come to Albania . The most famous case is that of Zani Caushi , who escaped from a high security prison of Larissa in February 1997 and , with a group of friends , established the gang of Coles in Vlora . The rule of gangs was terrifying . Typical cases remain Vlora , Berat and Lushnja . In Vlora , five gangs were created , but two ruled the city : the gang of Zani and the gang of Gaxhai . Movement in the city started at 10 : 00 , when people gathered in Flag ' s Square to hear the Committee of Rescue , and ended at 13 : 00 . After that hour the streets were deserted and the only people who moved were gang members . Gangs announced through speakers , flyers and other people not to go out as there would be fighting . Each night brought attempted attacks with explosives and numerous shots in the air , along with dozens of dead . In Berat , Altin Dardha ' s rule was even more severe . In Lushnje , Aldo Bare ' s gang had control . The worst crime that this gang committed was to behead an opponent and walk around the city . Cities ruled by gangs were Vlora , Berat , Tepelena , Memaliaj , Ballshi , Saranda , Gjirokastra , Lushnja , Pogradec , Cerrik , and Tropoja . Committees of Public Salvation or Salvation Committees ( ) were alleged criminal organizations set up during the rebellion . They were set up in many regions of the country , particularly the south . Public salvation committees were set up and periodically " de facto " usurped the functions of the Albanian state . Massive gunfire occurs in Tirana in celebration of the resignation of Berisha , which was the main demand of rebels . The insurgency ends . Aftermath . In elections in June and July 1997 , Berisha and his party were voted out of power , and the left coalition headed by the Socialist Party won . The Socialist party elected Rexhep Meidani as President of the Albanian Republic . All UN forces left Albania by 11 August .