May 21 (SeeNews) – The European Union has criticised Kosovo for closing six branches of Serbian state-owned Postal Savings Bank in the country’s north without prior notice, amid Pristina’s controversial ban on transactions in Serbian dinars.
Since February 1, dinar transactions have been banned in Kosovo, and the euro has become the only accepted currency. Despite the European Union’s efforts to facilitate normalisation talks, the issue remains unresolved.
“Yet again, uncoordinated actions by one of the parties put the implementation of the Agreement on the Path to Normalisation at risk. The operation by the Kosovo Police also jeopardises the ongoing negotiations on a temporary solution for people negatively affected by the regulation of the Kosovo Central Bank on cash operations,” an EU spokesperson said in an official statement.
Last week at the end of seven rounds of meetings, the European Union said Kosovo and Serbia had failed to find a middle ground on the issue.
On Monday, Kosovo’s police said they have shut down Postal Savings Bank’s treasury office and five other branches for operating illegally in the country. According to a police statement, the operation followed financial monitoring reports by the country’s Financial Intelligence Unit and the Central Bank of Kosovo.
Postal Savings Bank is not listed on Kosovo’s business register. Its branches in Kosovo operate directly under the bank’s Serbian headquarters.
On Tuesday, the bank issued a press release informing its clients that the suspension of operations in the six branches is temporary and their funds will not be affected, while redirecting them to the remaining branches in Jarinje, Brnjak, Merdare and Konculj.
The euro is widely used in Kosovo, although the country is not part of the EU. However, in the northern regions predominantly inhabited by ethnic Serbs, the dinar remains in use, with many Serbs relying on financial assistance from the government of Serbia, often provided in dinars.
