LFMI examination regarding the Draft Law Amending the Law on Payments for Agricultural Products (10-329-01)

In view of the fact that the regulation of payments for agricultural products has not reached its goals but, instead, created a number of administration and cash flow management problems, LFMI  suggests waiving regulation of late payment interest rates and adjustment of payment periods and also relaxing requirements for business entities to provide information on the status of payments to the institutions concerned. Requirements like these would limit competition on the market, aggravate business conditions and discriminate against larger buyers of agricultural products in respect of others. Part of amendments contained in the Draft Law (cancellation of regulation concerning computation of commercial credit interest rates and the order of payment thereof, adjustment of payments for agricultural products from a period 30 days to a term established by the State) reduce the burden on business but do not eliminate the substantive errors in the basic Law and their harmful effects. LFMI proposes lifting the restrictions  created in the basic Law and cancelling direct interference in the contractual agreements between business entities.