Business News

Finance Ministry Proposes Maximum Payment Term of 60 Days

Ljubljana, 24 January (STA) - The Finance Ministry has drawn up a bill which sets 60 days as the maximum payment term and introduces mandatory multilateral set-off in a bid to stem the surge in payment defaults that are hampering liquidity.

Payment term will be negotiable by contractual parties, but 60 days will be the maximum if the parties do not set the term themselves.

Public bodies will meanwhile have to observe 30-day payment terms, according to the bill which the Finance Ministry unveiled on Monday.

Failure by counterparties to pay bills on time has been singled out by business time and again as one of the main sources of uncertainty, forcing companies to take out loan to secure liquidity.

Another measure designed to tackle payment discipline is multilateral set-off, which allows companies to get at least a portion of their claim through set-offs involving multiple debtors and creditors.

Such set-offs are already being managed by the Agency for Public Legal Records and Related Services (AJPES).

AJPES will also manage the newly-created public register of bills of exchange, which is designed to improve transparency.

The ministry is open for comments on the bill until Thursday, whereupon it will be put to the government and forwarded to parliament for fast-track passage.

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