Croatia's financial regulator Hanfa said on Monday that Western sanctions against Russia and Belarus should not affect the financial stability of the pension funds operating in Croatia.

“Due to the existing legal restrictions, the mandatory and voluntary pension funds do not have any direct investments in Russian, Belarusian, and Ukrainian securities or bonds. Pension funds are long-term investors,”  Hanfa said in an unsigned press release carried by state news agency Hina.

“Short-term negative shocks due to global market reactions are mostly quickly offset, and in the long term these funds achieve stable and positive yields for their members,” Hanfa added.