EU reprimands Kosovo's move to close down Serb bank branches over the use of the dinar currency
The European Union has reprimanded Kosovo over the unilateral closure of six branches of a Serbia-licensed bank
PRISTINA, Kosovo — The European Union reprimanded Kosovo Tuesday over the unilateral closure of six branches of a Serbia-licensed bank, saying the move would negatively impact the life of the ethnic Serb minority living in northern Kosovo and damage Kosovo-Serbia normalization talks.
Kosovo police closed the branches of the Postal Saving Bank the day before in line with the decision to ban the use of the Serbian dinar currency in the country. They also confiscated 1.6 million euros ($1.74 million) and some 75 million dinars ($700,000), which the judiciary will later decide what to do with.
Since Feb. 1, the government required areas dominated by the ethnic Serb minority in Kosovo to adopt the euro currency, which is used in the rest of the country, and abolished the use of the Serbian dinar.
Pristina postponed the move for about three months, following pressure from the EU and the United States, concerned that the decision would negatively impact the ethnic Serb minority in northern Kosovo.
An EU statement from Brussels, which was emailed to The Associated Press, considered the move as “escalatory … against the spirit of normalization,” adding that such “uncoordinated actions" by Kosovo put chances of reconciliation “at risk.”
The State Department also was “disappointed” with Kosovo’s lack of coordination with international partners for the move, fearing it would escalate tensions.
“The United States reiterates its clear concerns about the implementation of the amended Central Bank of Kosovo regulation that restricts the import and use of the Serbian dinar in Kosovo,” said a State Department spokesperson in
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