Citizens say withdrawing money from Trust is more necessary than ever

Let's at least cover something that's been expensive”, says Sylvia Sedren, who works at a shop in Pristina.

Because of the crisis that has plagued us so ad hoc ] is more necessary than ever, says Aida Humlli, a civil servant in Kosovo's state administration.

Shaban Mustafa, from Gjilan, who says he works at a bank, agrees that withdrawal of the means is a solution at this time, but adds that the Government of Kosovo should then find ways to remunt them.

Establishment of legal opportunities for Kosovo citizens to attract up to 30 per cent of their savings from the Pension Savings Fund, or as the Trust has been known for days that have caused debate in Kosovo, with arguments for and against.

Such a proposal has made the largest opposition subject, the Democratic Party of Kosovo, on 9 March through a bill handed down to the Kosovo Assembly.

On May 16th, this party, along with the other opposition subject, the Alliance for the Future of Kosovo, have asked the Government of Kosovo to bring the draft law on fulfilling and changing the Law for the Pension Savings Fund to the Parliament as soon as possible. Their reasoning has been to help citizens cope with consumer price increases.

Abelard Tahiri, from the PDK, said Monday that the Commission for Finance and Transfer of the Kosovo Assembly is expected to address the bill Tuesday, while next week, he added, his review in the Assembly could be expected.

The ruling party, the Vetevendosje Movement, but the Government of Kosovo have said they do not support the withdrawal of resources from the Trust, with the argument that it does not help categories in need, because the very percentage of their pension funds is low.

Ramos: Maintaining the Dignity of Citizens

Economics professor Berim Ramosaj says the proposal for attracting the certain percentage of means saved by contributors finds no support in arguments, neither in political or social terms, nor in civic law.

The argument against this initiative, according to him, is that the Trust is not a citizen savings fund, but is a trust fund.

It, he adds, will serve to preserve the dignity of contributing citizens, after the age of 65 and their retirement.

That means if someone interferes with you to stimulate you to spend your money... If there are such deputies who want to draw Kosovo's citizen as contributors to the potential investor with those tools however low to direct consumer, [they] have no right to do so, in the sense of preserving civic dignity. As for their right, as initiative in Parliament, they have it right all day, says Ramosaj.

Limani: Pulling the vehicles from Trust, two- edged sword

But the other opinion is with retired economics professor Musa Limani. Speaking to Radio Free Europe, he says Trust tools are personal and individual tools of workers and not a joint fund.

In view, according to him, the high price rate and low wage levels in the face of these prices, the “Assembly should adopt the bill to withdraw tools from the Trust”.

Professor Limani says the withdrawal of these tools does not solve the economic crisis in the country, but may ease the difficult economic situation of some citizens. This is a two-way sword. I don't know what to call it, but, whatever it is, I'm about to pull [the lines from Trust]. What that percentage will be, they can deal with Trust, Government and, normally, union and workers. When workers seek their means, I think it's unjustifiable, in terms of law and economic, to prevent the withdrawal of these tools”, Limani says.

updating inflation

In 2020, after the economic crisis caused by the coronary pandemic, Kosovo's Assembly has adopted the Law on Economic Recovery, which has enabled citizens to attract 10 percent of the amount obtained from their retirement savings during their working time.

The process of withdrawing this percentage from the Trust began in late December 2020 and lasted until early April 2021.

According to Fund for Pension Savings data, more than 198m euros from 427,371 contributors have been withdrawn at the time.

Deposits in Kosovo banks during 2021 have marked 11 per cent increases. A GAP Institute report, headquartered in Pristina, has estimated that 40 percent of this increase has affected the withdrawal of savings from the Trust, which are deposited in private accounts but are not immediately spent.

Data from the Kosovo Statistics Agency says the annual inflation rate, measured in March 2022, compared to March 2021, has been 10 percent.

Meanwhile, the estimated inflation rate in April 2022 compared with April 2021 was 11.2 percent.

More serious or easier than during pandemic?

For the current economic situation of citizens, economic experts give different assessments.

Ramosaj says the eventual withdrawal of a minimum percentage from the Trust would be reasonable in emergency situations, when people can't work at all and can't move outside their homes, as has been the case during the coronary pandemic.

In the current post-independent situation, actually, the possibilities to work, to develop, and employment opportunities are much greater. And it's offered to people that their tools, which they're saving, aren't in the sense of saving, but they're sharing it as special means... In fact, those tools are the best guarantee for them, even for 10 years after retirement to have a minimally dignified life”, Ramosaj says.

Limani says the economic situation of citizens is currently heavier than during the pandemic, which erupted in March 2020 and for nearly two years has imposed successive periods of isolation.

According to Leman, raising the prices of vital items is actually an end to it.

A considerable number of people are unable to handle this situation because their family budget is low. Even those who work face this problem, because our salaries are low compared to the price level”, Limani says.

The average gross salary in Kosovo is estimated to be around 460 euros, while price increases have suffered most basic products, initiated by bread to the current.

Under the proposal of the Democratic Party of Kosovo, contributors, who have less than 10,000 euros in pension savings, must have the right to withdraw 30 per cent of the means.

Those who have up to 20 thousand euros, 25 percent, between 20,000 and 30 thousand, 20 percent. For taxpayers who have pension savings in the amount of 30 thousand euros: 15 percent, and those over 40 thousand euros, 10 percent.