Legal term for payments in Romania

Romania transposed the measures in EU Directive 2011/7/EU into Law no. 72/2013 on combating late payments in relations between businesses, or between such entities and State authorities. Therefore, the domestic legislator instituted detailed measures in order to ensure that payments performed by companies or by national authorities are performed in accordance with the agreed upon terms. 

The standard payment term is 30 days, if the parties have not otherwise agreed.

The parties may contractually agree to a reduced or extended payment deadline departing from the standard payment deadline above. However, such an agreement should not, in principle, exceed 60 days. 

In exceptional cases the parties may agree to a payment deadline of more than 60 days, provided that the clause is not abusive. A clause is abusive in such a situation if it establishes, in a manner that is evidently inequitable, different or additional payment terms or delays interest or damages. 

In contracts between businesses and contracting authorities, contracting authorities are in principle bound to pay amounts due to the other party within 30 calendar days from:

1. receipt of the invoice or another equivalent payment request; or
2. receipt of the goods sold or supply of the services (if the date of receipt of the invoice is uncertain or if it precedes the date of reception of the goods/supply of the services);
3. from receipt or verification of the goods/services, if the contract or the law provides for a certain receipy/verification procedure for the purposes of certifying the conformity of the goods/services. Such receipt/verification procedure not to exceed, in principle, 30 days from the date of receipt of the goods or from supply of the service Exceptions may apply, if an extended receipt/verification period is expressly provided in the contract and the procurement documentation, together with the objective grounds substantiating the same, and provided that the clause is not abusive. 

In certain sectors of activity (e.g. healthcare services), payment deadlines cannot exceed 60 days. 

Yes, provided that the term is expressly agreed upon and included in the agreement signed by the parties. 

Clauses imposing payment deadlines in breach of payment term legislation are null and void and  party which is adversely affected may challenge the validity of such clauses in court. Such a party may also request that the other party  pays default interest for the period of time exceeding the legal threshold. Where the clause is qualified as abusive (as per the above), this party may also potentially invoke tort liability and seek damages. 

In principle, there are no other criminal or administrative sanctions that would apply in case of breach of payment term legislation. Exceptionally, if a breach of payment terms has lead to the insolvency of the party entitled to payment, there may be a risk that the creditor’s liability for triggering or contributing to the insolvency could be entailed. 

In response to the COVID-19 situation, the domestic legislator has ruled that for 2021, under certain conditions, debtors which have been directly impacted by COVID-19, may postpone the payment of their bank loan or credit card instalments by up to maximum 9 months. This is an extension of the initially 6-months postponement granted in 2020.

Although during 2020 there were several other facilities granted for SMEs and and other categories of entities (e.g. law firms, notary public offices, dental clinics, family doctor offices), e.g. postponement of the rent and utilities payments, these were applicable only during the state of emergency.

If the agreed payment terms have not been observed, the creditor may request a delay in penalties in relation to the overdue amount, at the interest rate set out in the contract or, in the absence of such a determination, at the default/legal interest rate.