American Chamber reiterates concern over withdrawal of savings

The American Chamber of Commerce in Kosovo has cautioned against the possible approval of legislative changes enabling pension contributors to withdraw a portion of their savings.

While expressing understanding with the concern of the initiators and supporters of the proposed changes, the American Chamber recalled that the withdrawals of pension funds undermine the prospects for a dignified life after retirement. 

Considering that part of the pension funds is invested in treasury bonds, the possible withdrawal would affect the state’s ability for capital investments, which in turn will slow down economic growth, the American Chamber of Commerce warned. It added: “Short-term socio-economic benefits from the withdrawal of pension savings would in no way outweigh the negative consequences of such a measure. Therefore, policymakers in Kosovo, the ruling majority and the parliamentary opposition, but also other stakeholders, need to engage in a comprehensive dialogue to identify appropriate measures to overcome the current crisis and what may follow in the coming months.”