Combating Late Payments In Commercial Transactions - Exceptions

The general rule of the newly adopted Law on the Terms for the Settlement of Monetary Obligations in Commercial Transactions (the "Law") is that all payments between business entities have to be settled within 60 days and where the debtor is a subject from the public sector, the maximum agreed period for payments is 45 days.

The Law foresees some exceptions from this general rule for business entities and for the public sector, as well as for the business entities in the restructuring proceeding. The exceptions are as follows:

Exceptions for business entities

• Instalment payments - payment period is 90 days, whereby at least 50% of the monetary obligation has to be paid within the first half of the agreed payment period;