Anglo Adriatic Investment Fund SA
Encyclopedia
The Anglo Adriatic Investment Fund SA
was an investment fund set up to hold privatisation vouchers issued by the government of post-Communist Albania. It was unsuccessful in its attempts to reinvest them and collapsed.
(AAIF) was established by Irish entrepreneur Declan Ganley
. AAIF was the first foreign-managed investment fund in Albania, provisionally licensed on 13 April 1996 and definitively licensed on 22 May 1996. AAIF collected privatisation vouchers that the government of post-communist Albania was giving to Albanians, and it used the nominal value of those vouchers for investment in areas such as fertilizer, breweries, cement and pharmaceuticals. The Albanians who deposited their vouchers with AAIF received shares in the fund in return.
government, AAIF was left unable to continue with the privatisation. Even worse, the market value of the vouchers had dropped during the collapse of the Albanian economy
from 25.6% of their nominal value in January 1996 to 1.7% in October 1998. AAIF was bankrupt.
stated that AAIF's UK office (128 Mount Street, London, W1Y 5HA) shared an address with the European branch of US investment fund Paladin Capital, and also stated that Paladin Capital's advisory board was chaired by former CIA director James Woolsey
. Ganley denies any involvement with the CIA.
S.A. (corporation)
S.A. designates a particular type of corporation in various countries, mostly those employing the civil law. It originated in Spain during the 16th century. Depending on language, the abbreviation stands for various phrases meaning anonymous society, anonymous company, anonymous partnership, or...
was an investment fund set up to hold privatisation vouchers issued by the government of post-Communist Albania. It was unsuccessful in its attempts to reinvest them and collapsed.
Structure
The Anglo Adriatic Investment Fund SAS.A. (corporation)
S.A. designates a particular type of corporation in various countries, mostly those employing the civil law. It originated in Spain during the 16th century. Depending on language, the abbreviation stands for various phrases meaning anonymous society, anonymous company, anonymous partnership, or...
(AAIF) was established by Irish entrepreneur Declan Ganley
Declan Ganley
Declan James Ganley is a British-born Irish citizen, entrepreneur, businessman and political activist. He is founder and chairman of a political party, Libertas with pan-European ambitions...
. AAIF was the first foreign-managed investment fund in Albania, provisionally licensed on 13 April 1996 and definitively licensed on 22 May 1996. AAIF collected privatisation vouchers that the government of post-communist Albania was giving to Albanians, and it used the nominal value of those vouchers for investment in areas such as fertilizer, breweries, cement and pharmaceuticals. The Albanians who deposited their vouchers with AAIF received shares in the fund in return.
Early success
At one point the fund had 450,000 shareholders and vouchers with a nominal value of more than $120 million.Collapse
But AAIF had collected too many vouchers: it had 12% of all the vouchers and privatisation leks combined, more than the 10% maximum prescribed by law.Law No. 7979, entitled "On Investment Funds", dated 26.07.95, see here for source Following a lengthly period of negotiation and accusation between AAIF and the Albaniangovernment, AAIF was left unable to continue with the privatisation. Even worse, the market value of the vouchers had dropped during the collapse of the Albanian economy
1997 rebellion in Albania
The 1997 unrest in Albania, also known as the Lottery Uprising or Anarchy in Albania, was an uprising sparked by Ponzi scheme failures...
from 25.6% of their nominal value in January 1996 to 1.7% in October 1998. AAIF was bankrupt.
Funding
AAIF was officially funded by Ganley International, with a 10% stake taken by the US-based Rothschild Emerging Markets Fund. Der SpiegelDer Spiegel
Der Spiegel is a German weekly news magazine published in Hamburg. It is one of Europe's largest publications of its kind, with a weekly circulation of more than one million.-Overview:...
stated that AAIF's UK office (128 Mount Street, London, W1Y 5HA) shared an address with the European branch of US investment fund Paladin Capital, and also stated that Paladin Capital's advisory board was chaired by former CIA director James Woolsey
R. James Woolsey, Jr.
Robert James Woolsey Jr. is a foreign policy specialist and former Director of Central Intelligence and head of the Central Intelligence Agency .-Early life:...
. Ganley denies any involvement with the CIA.