The law came into force on December 25 2012 and will be applicable from March 31 2013.
The main provisions of the law refer to the deadlines of settling the existing debts between companies, and debts between companies on one side and the public sector on the other side:
The legal deadline of settling the existing debts between companies is limited to 60 days. This provision is applicable even in the following cases:
- When the deadline of settling of debts is not determined by the agreement between parties;
- When there is no agreement between parties; and
- When the deadline determined by the agreement is longer than 60 days.
In the following cases, the debtor is exempted from the above described provisions:
- Payments by instalments;
- Payments by bills of exchange; and
- Payments in the agricultural sector.
The legal deadline of settling the existing debts between companies and the public sector:
- In the event when the debtor is a public institution, the deadline for settlement can not be longer than 45 days;
- In the event when the debtor is the fund for health insurance of the Republic of Serbia, the deadline can not be longer than 90 days; and
- In the event the debtor is a company, the deadline can not be longer than 60 days.
In all events, the deadline for settlement of debts starts running with the first day from the date of the receipt of invoice.
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