Trust with 30 % investments in Kosovo, board owes to make quick decisions due to pandemic

Pandemia has created crisis for global financial markets. The crisis is also affecting the money of Kosovo taxpayers being preserved at the Kosovo Pension Savings Fund.

And this has caused the board of directors in the Trust to make quick decisions, changing investment composition by turning investments away from high-respective instruments that are primarily stock, to focus on a very low risk instrument.

Kosovo Pension Savings Fund (Trust) spokesman Jeton Demi has told Online Economy that going from low risk strategy will bring less investment.

We've been affected by China's crisis and we've had a decline in investment returns, and the Steering Board has made quick decisions by changing investment composition and removing investments from high risk instruments that are mostly stocked and we've gone from a very low risk strategy, which will bring about a return from lower investments, but at least we'll protect the high-resolvation”.

So while it wasn't predictable, I can say we're in a happy position being about 1 percent return from investments this year. It's not something we want, but in the current conditions when we have with our minds significant economic jams and economic growth is expected to be negative, so we'll have trouble getting back to our level of employment. At the moment, not bad by the prism that we see, we can say we're kept at the satisfactory and predicted level, but the fear exists what will happen”.

While talking about the risk of facing COVID-19, Demi says Kosovo continues to be in danger of economic decline.

“We expose danger like the whole world, especially the countries that are members of the Development Organization (OJCD) and now we will still be affected and we'll be in danger of this economic situation, but we're saying that so far I can say that we've done well and satisfied not to suffer a decline and that in time taken care of the board of directors to escape severe declines from exposure to high-resk instruments<2>, Demi has told EO.

Demi has said that the Trust currently has 30 per cent of investments in Kosovo, which, according to him, gives it the opportunity to manage the risk of quick moves more easily.

According to him, lack of risk does not even bring about the possibility of increasing the invested means in Kosovo.

Subsequently, the fact that we are investing more in Kosovo each year and currently have 30 percent of the investments in the country, gives us the opportunity to manage even more easily the risk of fast moves, but this then has the next cost that the lack of risk does not even bring the possibility of having increased tools”, he said.