BIA SUPPORTS THE AMENDMENTS IN THE EU DIRECTIVE ON COMBATING LATE PAYMENTS IN COMMERCIAL TRANSACTIONS

BIA supports the amendments to Directive 2000/35/EC on combating late payments in commercial transactions proposed by the European Commission. The issue is topical for all EU Members States, especially in the global financial and economic crisis.

We maintain that the proposed changes will enhance the possibilities for gathering overdue payments and will encourage the trade entities to execute their duties and make payments in commercial transactions in time.

We would like to emphasize the importance of the proposed implementation of stricter control in case of late payments on part of the public authorities because our national legislation treats public and private debtors differently, thus placing them on unequal terms. Moreover, the Civil Procedural Code, Chapter 46, grants privileges to the public authorities by failing to allow compulsory execution proceedings to be imposed on them.

The Directives amendments stipulate a requirement that the governmental bodies pay invoices in commercial transactions of goods supply or any other services within 30 days (the current period is 60 days).

After this period expires, the creditor will be entitled to 5 percent compensation of the respective sum, along with the late payment interest rate and a compensation for the gathering expenses.

Furthermore, we evaluate the amendment proposals as positive, for they will establish transparency rules, as well as a monitoring and assessment system, which will allow access to information concerning the Directive implementation.   

BIA also supports the amendment which will treat the absence of late payment provision in the agreement as an open misuse.

We propose the following measures against the inter-company indebtedness and the late payment issues: 

• Including a definition of “undisputed claims” in the Directive by setting greater and more reasonable boundaries for these type of claims;

• Improving the normative framework concerning the period for deliberation and ruling on claims to payments;