The Greek state will have to pay interest on its outstanding debts, now that it will integrate the relevant European legislation. The State and private businesses will have up to 30 days to pay off their debts, before a late payment interest rate and fines will be applied.
In exceptional situations the time limit before interest rates and fines are imposed can be extended to 60 days. According to the EU directive, this will be applicable to new debts, excluding any debts that were generated before the directive’s ratification by a member state.
The directive also provides conventional freedom to business transactions: businesses will have to clear their bills within 60 calendar days, unless there is an explicit agreement stating otherwise and that the agreement is not abusive towards the creditor.
Businesses will have the right to ask for late payment interest fees and will automatically collect a minimum of 40 euros as damages for failing to collection. They will also be able to demand damages for all other reasonable expenses incurred in the process of collection.
