This is one of the provisions of the document that will enable Moldova to bring its rules on commercial payments into line with EU standards. The draft was developed by the Ministry of Economic Development and Digitalization. It strengthens guarantees for the timely payment by government agencies of amounts owed under commercial contracts.
Amendments are being made to the Law on Combating Late Payment of Obligations under Contracts between Businesses, as well as between Businesses and Government Agencies, and to certain provisions of the Civil Code and the Code of Civil Procedure.
The European Commission Identified Discrepancies
The changes stem from the European Commission’s recommendations following a review of Moldova’s legislation as part of EU accession negotiations. Certain discrepancies were identified, which the draft law resolves.
The document clarifies the law’s scope of application, introduces new definitions, and establishes the creditor’s right to receive interest on overdue payments without the need to give prior notice to the debtor, among other provisions.
The draft bill retains the option to set the interest rate by agreement, whereas for debts owed by government agencies, the rate established by law will apply.
At the same time, the payment term between businesses must not exceed 60 calendar days, unless a longer term is agreed upon by the parties and does not prejudice the creditor’s interests. For government agencies, the general 30-day payment term remains in effect.
Control and Monitoring Are Introduced
In addition, government agencies will be required to ensure internal oversight of payment discipline, tracking of the payment process, and instances of late payments.
In this regard, the draft law provides for the creation of a state monitoring system for overdue payments and standardized reporting on debt in relations between government agencies and businesses. It will be administered by the Ministry of Economic Development and Digitalization, while the Ministry of Finance, the State Tax Service, the State Treasury, and other government agencies will facilitate data exchange.
Small and medium-sized enterprises are expected to benefit the most from the implementation of these new provisions, as late payments often lead to a shortage of working capital, reduced competitiveness, and the risk of insolvency for these businesses.
