Amendments to the Act on Counteracting Excessive Delays in Commercial Transactions

On January 1, 2020, an amendment to the Act on Counteracting Excessive Delays in Commercial Transactions came into force. Some of the solutions are aimed at strengthening the position of creditors from micro, small or medium-sized enterprise sector. The amendment includes, among other things, the shortening of payment terms in commercial transactions. In situations where the debtor is a public entity up to 30 days – with no possibility of extension. The exception is a public entity that is a medical entity, for which the 60-day deadline is left. A maximum 60-day deadline for payment has also been introduced in transactions in which the creditor is a micro, small or medium-sized entrepreneur and the debtor is a large entrepreneur. In commercial transactions in which the parties to the transaction belong to the same category, a 60-day payment term may be set with the possibility of extension if it is not grossly unfair to the counterparty. It should be noted that setting by the parties commercial transactions of terms longer than those allowed by the law will result in the sanction of statutory terms.

In connection with the aforementioned amendment, the amount of interest for delay in commercial transactions has also increased to 11.5%.