Andric Rakic: Implementation of the Cash Operations Regulation would mean recognition of Serbian institutions in Kosovo

Milica Andric Rakic, Program Manager at the NGO Social Initiative, told Kosovo Online that the implementation of the Cash Operations Regulation would only be possible if Kosovo recognized Serbian institutions as legal.

She emphasized that, based on the reaction of the CBK Governor, it was evident that he did not understand the implications of his decision.

"In essence, what has been circulating in the Kosovo public for days is that there is a possibility for citizens to withdraw money in euros. One crucial aspect is omitted here – citizens working in Serbian institutions will not be able to open an account in Kosovo banks based on contracts they have with Serbian institutions. This is only possible if Kosovo recognizes these institutions as legal. This shows the recklessness of this solution. Either Kosovo institutions pretend not to understand, or there is a lack of understanding," Andric Rakic stated.

She added that any citizen wanting to open an account, for example, in Raiffeisen Bank, would have to bring a work contract, based on which they were opening the account for salary payments.

"Then the bank will have to recognize Serbian institutions in Kosovo as legal, which Kosovo claims are parallel and illegal. Additionally, if they do recognize these institutions, it won't only be about opening accounts for citizens working for these institutions, but also for the institutions themselves, as can be inferred from the Governor's statement. This would mean that citizens would be subject to double taxation. Whenever you receive money from abroad, especially in foreign currency, you are taxed. This would mean that the Serbs in Kosovo, already taxed by Serbia when their salaries are calculated, would face additional taxation in Kosovo," Andric Rakic pointed out.

She emphasized that the Kosovo authorities had not explained their actual goal because they obviously did not understand the public's concerns.

"Everything is very unclear. This statement, which was obviously supposed to be a response to criticisms that they did not inform the public well, shows that they themselves do not know what the public's concerns are. So, they don't understand all these things because they probably haven't talked to anyone from the Serbian system to understand all these issues or simply do not know their job well enough," our interlocutor believes.

As February 1st is very close, Rakic stated that she did not know what to expect, and the Serbs in Northern Kosovo felt the same way.

"I really don't know what will happen. It's completely uncertain. There are two ways to solve this: either the Kosovo Government recognizes Serbian institutions in Kosovo as legal or forms the Community of Serb-majority Municipalities. It is essentially a Kosovo institution, and then the CSM could take over these payments. There is no other solution," Andric Rakic believes.

She points out that it is also possible to continue with the system that has existed so far.

"It is not entirely legally clarified, but it was adapted to the reality on the ground, and the reality is that a good part of the public life of Kosovo Serbs depends on Serbian institutions in Kosovo. Most citizens economically depend on receiving salaries, pensions, or social benefits from Serbia," Andric Rakic emphasized.