BQK regulation: EU reacts again, has Kosovo requirement

The European Union has again come up with statements concerning Kosovo Central Bank's new regulation, which will come into force today, urging Kosovo to secure a very long transition period and find a negotiated solution to the issue within dialogue.

In a statement by the EU spokesman, the European Union is reportedly concerned about the consequences this decision could have on the daily life of Kosovo Serbs and other communities throughout Kosovo “due to lack of preliminary consultations”.

“The EU notes that the regulation will affect even the financial support Kosovo Serbs receive from Serbia. The EU is concerned about the consequences this decision could have on the daily life of Kosovo Serbs and other communities throughout Kosovo due to the lack of preliminary consultations, especially for its impact on schools and hospitals, given the apparent lack of alternatives at this moment. The short period of transition to implementing the regulation, combined with lack of information and practical solutions for all affected communities, are at risk of seriously complicating their lives”, the statement said.

Kosovo Deputy Prime Minister Besnik Bislimi has confirmed last night that the Kosovo Central Bank regulation (BQK), which decides only euro currency to be used for cash payments, will take effect Thursday, as envisioned.

Bislimi, however, said a relaxed transition would be secured. He did not show how long the transition period will last.

“Emplore the regulation does not imply a ban on transfers from Serbia and does not imply eventual financial penalties for holding the currency of another state”.

The ambassadors of the QUINT states have demanded that Kosovo suspend implementation of the regulation.

Through a joint statement, the QUINT ambassadors said the suspension of the decision would have to be made to “enable a sufficient transition period and for clear and effective public communication”.

The “issue should be further discussed under the dialogue facilitated by the European Union”, the statement said.

QUINT ambassadors said the BQK's regulation for cash operations, expected to go into effect on February 1st, aims to reduce counterfeit money and preserve financial stability, but also “gre concerns about the impact in particular on Serb majority communities”.

“We are concerned about the impact of regulation in particular on schools and hospitals, for which no alternative process seems applicable at the moment. The regulation will also have a direct impact on the daily life of the overwhelming majority of Kosovo Serbs who receive payment and financial assistance from Serbia”, the QUINT ambassadors' statement said.

The EU's full statement:

The European Union pays attention to the Kosovo Central Bank regulation, which is expected to take effect today. The regulation aims to increase transparency of financial flows, ensure financial stability and fight money laundering and counterfeiting.

The EU notes that the regulation will affect even the financial support Kosovo Serbs receive from Serbia. The EU is concerned about the consequences this decision could have on the daily life of Kosovo Serbs and other communities throughout Kosovo due to the lack of preliminary consultations, especially for its impact on schools and hospitals, given the apparent lack of alternatives at this moment.

The short transition period for law enforcement, combined with lack of information and practical solutions for all affected communities, are at risk of seriously complicating their lives.

The EU urges Kosovo to secure a very long period of transition and find a negotiated solution to this issue within the EU-enlightened dialogue.