Law on Payment Deadlines comes into effect March 31st

Minister of Finance and Economy Mladjan Dinkic announced Friday that a law on payment deadlines in commercial transactions will be passed by the end of November, stipulating that the state shall pay its obligations within 45 days, and companies within 60 days.

Speaking in the Serbian Chamber of Commerce, where a public debate on the Draft law on payment deadlines in commercial transactions was held, Dinkic explained that the aim of that document was to make the state the generator of economy liquidity and to introduce greater financial discipline.

The Minister also said that the law would become effective as of 31 March 2013, so that the state and the economy could prepare for its implementation, but noted that it would not be applied retroactively.

Health institutions and the state Fund for Health Insurance will be exempt from this rule, and will have the payment deadline of 90 days, Balkan Business reports.

Dinkic explained that companies would be able to settle their obligations in a period longer than 60 days if the payment was made in installments. As he said, in that case the maximum deadline is 90 days, with the payment in two equal installments.