The mission in Kosovo of the Organization for Security and Cooperation in Europe (OSCE) expressed concern after the action of the Kosovo police in Northern Kosovo on Monday, during which six branches of the Serbian Post Bank were closed, reported “Economy Online”, quoted by BTA.
Kosovo defines as illegal the Serbian institutions in the northern part of the country, which is mainly inhabited by Serbs. Serbia does not recognize Kosovo's declared independence in 2008. The two countries are conducting a dialogue to normalize relations under the auspices of the European Union.
The latest escalation of tensions was triggered by the decision of the Central Bank of Kosovo to ban the use of the Serbian dinar as a means of payment in the country from February 1. This raised concerns among the local Serb community, which receives salaries and pensions in dinars from Serbia and uses them for payments in Kosovo. Pristina adopted the euro as its official currency in 2002, although it is not a member of the eurozone. Kosovo authorities delayed the ban by about three months after pressure from the EU and the US, but the transition period for the use of the dinar in Kosovo ended on May 11, and from May 12 the euro is the only currency for cash payments.
Yesterday (May 20), the Minister of Internal Affairs of Kosovo Djelal Svechlja announced that the Kosovo Police, in cooperation with the Tax Directorate of Kosovo, carried out an action to control and close six branches of the so-called “Post Bank“ as an illegal financial institution of Serbia in the Republic of Kosovo.
The OSCE today called on Kosovo and Serbia to refrain from actions that could escalate tensions and welcomed the EU's efforts to find a solution to cash payments.
„It is essential that both sides continue to engage constructively with the EU to resolve these issues through dialogue (with each other), to avoid destabilizing actions and to prioritize interests and the well-being of citizens of all communities”, states the OSCE position.
Both the US and the EU called yesterday's action by the Kosovo government uncoordinated and exacerbating tensions.