Hovenier: Kosovo's decision on the dinar has affected our relations

2024-02-15 16:25:00, Kosova & Bota CNA

Hovenier: Kosovo's decision on the dinar has affected our relations

Jeff Hovenier

The American ambassador in Pristina, Jeff Hovenier, said on Thursday that Kosovo's decision to implement the regulation of the Central Bank of Kosovo on the banning of the Serbian dinar has affected the quality of relations between the United States and the Government of Kosovo.

"Let me emphasize how problematic it is at the moment that our governments do not seem to be working in partnership with each other. So I want us to avoid more things like this," Hovenier told reporters on Thursday.

The new regulation of the Central Bank of Kosovo - which stipulates that the euro is the only currency that can be used for cash payments throughout the country - came into force on 1 February.

He said that the statements of American officials have always been clear that Kosovo should postpone the decision to implement the regulation.

"We hoped that the Government of Prime Minister Albin Kurti would commit, as partners do, to solve this issue together, instead of taking actions unilaterally... we are concerned that Kurti's Government has not done so. Any suggestion that things are okay, that we all agree with each other, is not true at all. We are concerned and frustrated, and I think Assistant Secretary O'Brien's tone reflects that very clearly." Hovenier said.

Hovenier emphasized that it is a "rare thing" for Kosovo to be criticized by the United States in the UN Security Council, referring to the speech of the American ambassador to the UN, Linda Thomas-Greenfield, who repeated her country's request for Kosovo to suspend the implementation of the CBK's decision during a session on February 9, where they discussed the dinar issue at the request of Serbia.

The harsh statements of the American ambassador in Pristina were made a day after the Prime Minister of Kosovo, Albin Kurti, tried to reject the suggestions of the American Assistant Secretary of State, James O'Brien, who said that Kosovo is jeopardizing the partnership with the United States. United after the decision to ban the Serbian dinar.

"The Republic of Kosovo does not have an important partner, ally and friend like the United States, that's how I consider it and cooperate as Prime Minister of Kosovo", said Kurti on Wednesday.

O'Brien warned on Tuesday that the United States may not treat Kosovo as a partner if it makes decisions without consulting him, following the decision to ban the Serbian dinar.

"I don't make vague threats publicly. I would say, if we are not treated as partners, we will not treat the government of Kosovo as a partner either", said O'Brien on Tuesday in an interview with Voice of America.

Hovenier said he was troubled by the public statements of Kurt and other Kosovar officials after O'Brien's interview, who claimed that the US-Kosovo partnership has not and may not be affected by this situation, adding "I have to be obviously that's not true at all. It's not."

On Monday, the CBK announced that the transition phase of the implementation of its regulation will last up to three months, while the Prime Minister of Kosovo, Albin Kurti, said that Kosovo will not give up the decision to ban the dinar for payments with cash, but that he is respecting the demands of the international community on this matter.

However, Hovenier emphasized that the Kosovar Government has not listened to the requests of the USA for the postponement of the implementation of the decision of the regulation.

He said that the United States had asked the Government of Kosovo for two specific things regarding the decision to implement the CBK regulation.

"First, a procedure must be established through which Serbia can transfer the funds in accordance with the Central Bank regulation. But this means European standards and practices. The establishment of this procedure must be discussed in the dialogue mediated by the EU We expect Kosovo and Serbia to engage constructively in this.

"Second, while working to implement this long-term process, there should be temporary provisions to allow Serbia to continue providing funds for necessary social services, including social payments, such as pensions, support for the health and education systems. So far there have been no attempts to enable this on a temporary basis," explained Hovenier.

Serbia has strongly criticized the CBK regulation, interpreting it as the goal of the Government of Kosovo to deport Serbs. The Serbian state allocates millions of euros to Serbs in Kosovo after paying them - through a parallel system - salaries, pensions and additional assistance.

For years, the People's Bank of Serbia has sent the dinars to a safe in the municipality of Leposavic, in the north of Kosovo, and they were then transported by the international company Henderson.

The CBK has said that such a practice is illegal, as only it can export and import coins and banknotes within the territory of Kosovo.

The Constitution of Kosovo stipulates that there should be only one currency for making cash payments.

Kosovo is not part of the Eurozone - which consists of 20 member countries of the European Union - but has had the euro as its main currency since 2002./REL