The Parliament of Montenegro has adopted the Law on Payment Deadlines for Monetary Obligations.
This law regulates payment deadlines for monetary obligations in commercial transactions between business entities or between the public sector and business entities to prevent overdue payments. The payment deadline for monetary obligations between business entities is 30 days from the establishment of a debtor-creditor relationship. A debtor-creditor relationship arises on the day of receipt of goods, performance of services, or the receipt or verification of other documents accompanying the sale of goods and performance of services.
The contract may specify a different payment deadline for the debtor’s obligation, but it cannot exceed 60 days. If the debtor delays payment, they owe the creditor, without any reminder, the principal amount and interest for the delay, provided that the creditor has fulfilled their contractual and legal obligations and has not received the principal amount on time, unless the delay is not the debtor’s fault.
The statutory interest rate for late payment in commercial transactions is equal to the penalty interest rate applied to main refinancing operations, increased by eight percentage points, as determined by the Central Bank of Montenegro. The statutory interest rate for late payment in commercial transactions is determined twice a year:
- For the period from January 1 to June 30;
- For the period from July 1 to December 31.
In commercial transactions between entrepreneurs, a different interest rate for late payment may be agreed upon, but it cannot exceed the statutory interest rate for late payment applicable on the date of the contract. If interest is agreed upon but its rate is not specified, statutory interest for late payment will be applied.
A business entity failing to settle monetary obligations within the deadlines established by this law will be fined between 1,000 and 10,000 euros. Responsible individuals within the business entity will also be fined between 500 and 2,000 euros.
On the date this law comes into force, the Law on Payment Deadlines for Monetary Obligations (“Official Gazette of Montenegro,” no. 28/14) ceases to apply.
This law was published in the “Official Gazette of Montenegro,” no. 113/2024, on November 27, 2024, and enters into force on the eighth day after its publication in the “Official Gazette of Montenegro.”
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