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The Prime Minister of Kosovo, Albin Kurti, came out with an announcement on Tuesday about the issue of the Serbian dinar in Kosovo, a topic that has aroused the reaction of the international community as well.
Through a statement, Kurti said that a transition period is needed for the issue of the Serbian dinar.
He stated that during this month they will provide all the necessary information on this matter. Kurti congratulated the Central Bank of Kosovo (CBK) for its professionalism, giving support to the new regulation.
"I write this statement emphasizing that the Office of the Prime Minister fully supports the independence of the Central Bank of Kosovo (CBK) and the professionalism with which it performs its duties. In this capacity, I feel obliged to protect the professionalism of public bodies. At the end of last year, the Central Bank issued its regulation on cash payments. Regulating the way foreign currencies operate in a country is, of course, a core competence of the Central Bank. This regulation does not target the Serbian Dinar. The Central Bank has rightly requested that the informal transactions carried out in Serbian dinars be formalized; therefore, their existence and continuation had been illegal. The official currency of Kosovo is the Euro, and the regulation comes almost 16 years after our declaration of independence", the communiqué states.
Further, Kurti has said that the lack of this regulation can result in money laundering, financing of terrorism and other illegal activities.
"This decision is the basic responsibility of the Central Banks, aiming to regulate the entry of foreign currencies into the territory. The lack of such regulation can result in money laundering, terrorist financing and other illegal activities. In practical terms, this decision means that payments received by Kosovo Serbs are still permissible, but will be deposited into their accounts in Euros. Of course, private possession of foreign currencies remains permissible" , said Kurti.
He stated that almost 35% of the Serbian community in Kosovo receive pensions from the Government of Kosovo in euro currency.
" Since our Government distributes public money in the form of subsidies and other means for social protection, which are simultaneously received by the Serbian community in their Euro bank accounts, there is strong evidence that these bank accounts are widely used. Almost 35% of the Serbian community in Kosovo receive pensions from our Government in their own Euro accounts. Pensions they receive from Serbia can be transferred to the same accounts, as a supplement and not as a replacement for existing benefit schemes. In addition to official bank branches, there are 15 other financial institutions where pensions from Serbia can be allocated, in the absence of bank accounts.
In addition, the opening and maintenance of new bank accounts in Euros will be free of charge. Our ongoing efforts aim to simplify this process. The transition period has already begun and joint efforts will ensure its speed and ease. Change always brings difficulties, even if changes strengthen democracy. But a period of transition should never be misinterpreted as an attack or deepening division. And the brief uncertainty encountered during this period should not be exploited for political gain. This period of change is made more difficult not through the voices of the Serbian community here, but through fear-mongering, when we should, in fact, be exercising prudence and calmness.
We understand that the way this issue is communicated could be clearer to avoid confusion. Although the regulation entered into force on February 1, we understand that a transition period is necessary. During this month, we will make sure to provide all the information and assistance necessary to make this transition as smooth as possible. From now on, we also pledge to promote communication campaigns that address these issues with the sensitivity they deserve.
It is the opinion of everyone who loves Kosovo, that we are progressing and there is progress to be made. In this journey, our actions are judged on two bases: (1) the intentions and (2) the letter of the law. An action that aims to strengthen democracy by enforcing the law must be interpreted for what it is. As our country grows in its democratic power, it will likely need some adjustments. For the many parties that are strongly invested in the prosperity of our country, I encourage the same: let the adjustments happen, so that we can reach the next step, towards which we all work diligently" , says Kurti's statement.
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