The decline in the value of funds invested by the Trust has made the opposition in Kosovo return to the topic of withdrawing funds from contributors, which was rejected by the government. Deputies of the Democratic Party and the Democratic League, citing this year's losses, have criticized the government for its rejection in January of the law on withdrawing funds from the trust for contribution-paying citizens.
"The losses in the Trust during this month are about 60 million euros! The situation at the Trust is alarming! During 2022, all country contributors have lost less than 118 million euros of their funds in the Trust. The downward trend of shares is in a worrying situation this year as well. Only during this month that we are now, specifically from March 1 to today, we have lost about 60 million euros in the Trust!" wrote on Facebook PDK deputy Ferat Shala, who also accused the government of why it is not appoints the Trust's management board. "Despite this situation, the Government has not yet established the management board. About 3 billion euros of the Trust are at the mercy of circumstances and time, at the mercy of global markets, practically at the mercy of no one!", he wrote further on Tuesday.
Shala recalled PDK's proposal that part of the funds be returned to the citizens in order to overcome the inflation crisis.
"Not far from now, when the Democratic Party demanded that part of the funds be returned to the citizens, to those who had contributed, the Government and the majority persistently refused and voted against, in the name of preserving social schemes for the retirement age. Time is proving the right and legitimate demand of the citizens for the Trust, especially today when the losses are in total about 200 million euros. Does this country have a Government?!" he continued.
A day before, the former prime minister and deputy of the LDK, Avdullah Hoti, also criticized the government for the matter of the Trust. He also accused that the absence of the board has caused that "about 2.5 billion euros of pension savings invested in financial markets are at the mercy of fate".
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There are no new withdrawals from the Trust
Besides the accusations about the board issue, Hoti also recalled the rejection of the draft law for the withdrawal of funds from the Trust.
"How will he answer now?!" he asked the government.
In January, the deputies of Kosovo said no to a new withdrawal from the Trust, with 55 votes against and 42 in favor, for the initiative, which last time went to the Assembly through a petition of 21 thousand citizens. With the legal changes, it was proposed that people who have up to 10 thousand euros in savings, withdraw up to 30 percent of them. Those who have 10 to 20 thousand, withdraw 25 percent, while those who have collected more than 30 thousand euros withdraw up to 10 percent. Such an initiative also failed in June last year. In 2020, the withdrawal of 10 percent of the trust was made possible for the first time in Kosovo.
Meanwhile, in a clarification about the state of investments, the Pension Savings Fund has said that in the portfolio, which includes all contributors up to the age of 63, there is a decrease of 36 million euros in the period January 1 - March 20. As for the conservative portfolio (which includes all contributors aged 63 and over), there is a positive return of 800 euros.
"Based on the experience of the institution and the composition of the current investment portfolio, we cannot say that the assets of the FKPK as a whole are at risk, but the institution is in a difficult situation without the main decision-making body according to the legislation in force," the clarification states. .
Likewise, the Trust has said that it has warned the Selection Committee, composed of the Governor of the Central Bank, the Minister of Finance and the Auditor General, several times about the expiry of the mandate of the Board of Directors.
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Pending the decision on the 30%, the value of the Trust falls
"Also, the FKPK, according to the request of the Commission, has announced the competition for members of the Board of Directors and after the end of the competition, all the documentation for the candidates for members of the Board of Directors has been submitted to the CBK", the announcement states.
KOHA has sent questions to the Government about this issue and the opposition's accusations. Once a response is received, the article will be updated.
