Macedonian law on financial discipline – challenge and benefits

  • Janka Dimitrova "Goce Delcev" University

Abstract

 

"And they do not pay to me. When they’ll pay me - I will pay you! "

This is the motto that realistically demonstrate the mutual payments situation between the companies in Republic of Macedonia. This situation of late obligations payment, causing a chain reaction and disruption liquidity of companies and the economy in general. It is estimated that domestic debt as a result of the financial indiscipline over the years, measured by billions of euros.

In order to overcome this situation, in December 2013, The Law on financial discipline  applying from 01.05.2014, the aim was to bring order to the payment of liabilities as the private sector and in state enterprises and institutions. The expectations were that the law will improve the liquidity of companies through the timely obligations payment between private - private and public - private sector. The law defined deadlines for liabilities payment of 30, 60 or 120 days if it has the written consent of the Parties. The penalties provided for in the Act of 1000 to 10,000 euros, was to end unethical operation between companies and break the chain of illiquidity. The adoption of the law was welcomed by the business community and the scientific profession, with a warning that should be taken of the effects and adverse effects that can cause it, and inconsistencies and undefined terms that it has.

Within 18 months of the application, Law of financial discipline has undergone two amendments and adoptions, and were adopted two instructions for timely fulfillment of financial obligations and oversight of business transactions between these economic operators from the private sector in order to overcome gaps and inconsistencies which contained the first version. It seems that the Macedonian economic conditions require a more cautious and studious approach in making such radical legislation for an extended period of adjustment to finally respect thereof.

Published
May 11, 2016
How to Cite
DIMITROVA, Janka. Macedonian law on financial discipline – challenge and benefits. Journal of Economics, [S.l.], v. 1, n. 1, may 2016. ISSN 1857-9973. Available at: <http://js.ugd.edu.mk/index.php/JE/article/view/1393>. Date accessed: 12 dec. 2019.
Section
Accounting and Auditing