Republic Of Srpska Introduces New Law On The Deadlines For Settlement Of Financial Obligations In Commercial Transactions

The National Assembly of Republic of Srpska adopted a Law that regulates the deadlines for settlement of financial obligations and penalties applicable in case of failure to comply. The law - published in the Official Gazette no. 31/18 - is effective as of 24th April 2018.

The Law applies to legal entities on the territory of Bosnia and Herzegovina, with the exception of financial institutions, economic entities under insolvency proceedings or economic entities under garnishment or foreclosure.

The main novelties introduced by the Law concerning commercial transactions are as follows:

The payment period must not be longer than 60 days (unless the debtor provides adequate means of securing - a bank guarantee containing the terms "irrevocable", "unconditional", "debit-free at first call without objection" as well as bills of exchange issued by the bank. ) In cases when a contract does not specify a payment period, a default payment period of 30 days will apply. The deadlines for fulfillment of a financial obligation commence from: The day when the debtor received the invoice or other official document; The day when the creditor fulfilled his obligation - in cases when it's not possible t determine the day of receiving an invoice; The expiry date for the inspection of the subject of the purchase -...