Economists: Also allowed to withdraw 20 percent from Trust

Under the Law on Economic Recovery, issued in December 2020 by the Avdullah Hoti Government, citizens were able to withdraw 10 percent of the Trust's savings. For four months the application lasted, 427 371 attracted over 197m euros. About 120m euros of them will be repaid in the next five years, for persons who attracted less than 1,000 euros (was under 10 thousand euros in savings).

Mustafe Kadriy, economics expert, says that Pandemia Covid-19 has made a decision and affected all fields, reduced economic activity and increased economic and financial crisis.

Kadrijaj told EO that since the Kosovo government cannot support businesses and citizens, at least it should give citizens the opportunity to withdraw 20% from the Trust.

According to him, the pandemic has lowered the level of tools in each citizen's portfolio and each business. “These problems were lifted and impacted on price hikes in all leaves, both in the food sector and similar”.

Also, we should be aware that since Kosovo does not have a strong budget and has not been able to support businesses and citizens, we have come to a point that everyone, businesses and citizens, is ahead of an act committed”.

And since this government is having no choice, nor is it supporting them through budget, at least it should allow citizens to withdraw their savings... It gives them an opportunity to increase financial power. Financial power affects the growth of consumption that would also have generated economic activity in businesses, but it would have empowered the portfolio of each citizen”, says Kadrijaj.

“It is very welcome for citizens to withdraw 20 %s of the Trust for the fact that it would facilitate their economic life. It would also affect empowering consumption, therefore helping the business itself”, he argues.

Jakup Bellaqa, an expert on economic issues as well as university professor, also supports the idea that citizens will be allowed to withdraw 20 percent of their savings from the Pension Trust.

“should allow, because this is the practice that was applied even earlier by past governments. They're citizen tools, they're cheap, they can use them. Because of price hikes, it had to be good, it's like a possible alternative, because the purchasing power has increased”.

“was an optimum solution coming out of this difficult financial situation”, he estimates.

But, Bellaqa stresses that along with the Trust's 20-percent, the government should take other measures to help the population and businesses.

According to him, the state through the Central Bank of Kosovo (BQK) should see the possibilities for commercial banks to allow long-term loans to businesses, lower interest rates, including for consumer loans “in order to get out of this” situation.

The withdrawal of 10% of savings was provided with the Law for Economic Regeneration, voted in the Kosovo Assembly as assistance for the period of pandemic. Since then, there had been proposals that citizens were allowed to receive up to 30 percent from their Pension Fund.

Vetevendosje, which had remained in the opposition at the time, had opposed the withdrawal of pension savings, as well as the reimbursement, with the reasoning that “most benefits those with the highest salaries from the state”.

Even the International Monetary Fund (FMN) was against the withdrawal of 10 per cent from the Pension Savings Fund. According to the IMF, attracting this money reduces future pensions and limits the size of the internal capital market.