Representatives of domestic retail, industry and consulting companies pointed out to “Naftemporiki” the risks and challenges that may accompany the imminent implementation of a single harmonization framework.
Rationalization
The European Commission’s proposal to replace the current Directive with a Regulation seeks to streamline the existing provisions by introducing a maximum repayment period of 30 days for all commercial transactions, including B2B transactions, but also those between public authorities and businesses.
An exception may be medicines, but also non-perishable agricultural products and food, where the payment margin has already been established at 60 days.
The proposal is expected to be put on the agenda of the EU Competitiveness Council at the level of finance ministers set for May 24.
As Panagiotis Tsiolis, partner in the Department of Financial Advisors, Corporate, Strategy and Transactions of EY Greece, stated to “Naftemporiki”:
The repayment period
“This debate has been open since 2000, but it has now returned with greater intensity. The European Union’s proposal is in the right direction, as there is a disparity in the purchasing power between a large customer and a smaller supplier (SME) in terms of repayment.
For SMEs, as the repayment period extends, there is a financial cost and a gap in working capital, which is more difficult and expensive for them to cover through the banking system.
Changes
“Overall it will reform the market and it is not easy to predict the effects. Greece’s case is special following a ten-year recession that changed the way the market works. Even though the situation in the banking system has been restored, the majority of Greek businesses do not have access to it, while they do not “enjoy” the same financial support tools compared to other mature European markets. In Greece there should be an additional mechanism to support the market,” Tsiolis pointed out.
