KPST representatives at a meeting with members of the American Chamber

The American Chamber of Commerce in Kosovo organized a virtual forum during which the investment strategy of the Pension Fund (Trust) was discussed as well as the opportunities extended to the private sector in Kosovo. During this forum, business representatives, members of the American Chamber of Commerce, had the opportunity to be informed of the structure and criteria of this strategy.

The Managing Director of the Pension Savings Fund, Adrian Zalli, underlined that this fund currently has assets worth over two billion Euro. According to him, the assets of the Pension Fund are invested in order to increase the profit solely in the interest of contributors, while the main principles that must be followed for the implementation of these investments are defined by the Law on the Pension Fund. Zalli said that these principles should guarantee the security of the fund, variety of investment, maximum profit in accordance with the security of the fund and the maintenance of adequate liquidity. He emphasized that the principle of the Steering Board is to increase the investment of funds in Kosovo, through bank deposits but also participation in the securities market, which then would be invested by the Government of the Republic of Kosovo in the areas needed most. According to Zalli, the Kosovo Pension Fund has clear restrictions regarding investments in Kosovo by not envisaging direct investment in various enterprises or projects in the country.

Valdrin Kasumaj, board member of the Kosovo Pension Fund stressed that restrictions within the legal mandate of the Pension Fund affect the ability of this fund to support businesses in Kosovo while adding that during 2020 the Fund’s participation in the securities market or banking deposits in the country increased and keeps increasing.

Hekuran Murati, Chairman of the Parliamentary Committee on Budget and Transfers, while emphasizing that the supply of financial products in Kosovo is somewhat limited, said that investment needs should be considered for enterprises based on their development cycle. According to Murati, access to finance is usually more problematic for new businesses compared to more mature businesses, which may be more predictable for the lending sector. He emphasized that due to the restrictions deriving from the Law on the Central Bank of Kosovo, any financial activity must be licensed by this institution, which while protecting the consumer, taking into account the fact that knowledge on finance is limited, at the same time it limits innovation in the finance sector. Regarding investments, Murati said that it is a great challenge to establish links between individuals or entities with investment funds, with those who need investment. He further stated that the Kosovo Pension Fund encounters problems for direct investments in the private sector due to the impracticality to deal with individual lending cases, the difficulty in determining the structure of the investment, as well as the principle of assessment of the return in investment.

Mërgim Cahani, Chief Executive Officer in Gjirafa, referring to a ten-year period, stressed that now the companies with the highest value are undoubtedly those in the technology sector. Cahani mentioned the fact that the greatest potential for the economic development of the country lies precisely in this sector; therefore, the same should be supported more by creating investment opportunities within the state. Cahani stressed that the lack of opportunities orients companies towards foreign investors, which in turn causes a reduction in revenues for the state box, as the return of foreign investment does not remain in circulation within Kosovo but returns to the investor.