Belgian-Macedonian Business Club

Your account is blocked because you did not pay your debt and you settle everything via compensation? Not anymore in North Macedonia.

Main Provisions of the Law

The Law on Payment Services and Payment Systems, effective from January 1st, 2024, includes provisions designed to regulate payment transactions. One of its provisions is the prohibition on payment by calculation for companies with blocked payment accounts. This means that companies are not allowed to settle mutual monetary obligations and claims through compensation, assignment, assumption of debt, or other forms of mutual settlement if their payment accounts are blocked.

Who the law applies to

The law applies to the entities involved in payment transactions. It specifically targets all businesses participating in payment transactions, specifically those with blocked payment accounts. Additionally, the law encompasses budget users, individual users, institutions with accounts in the Treasury General Ledger, and public health institutions. For these public entities, the ban on payment by calculation has been effective since the law’s initial introduction.

How It Affects Your Business

Companies that engage in mutual settlements of monetary obligations with a contracting party whose payment account is blocked face the risk of having these settlements nullified in court as they are considered illegal. Consequently, businesses must adopt more stringent financial checks to verify the status of their contracting parties’ payment accounts before agreeing to any mutual settlement arrangements. This may necessitate revising contract terms to avoid engaging in prohibited transactions.

Legal information is provided via Apostolska Aleksandrovski & Partners, member of SELA South East Legal Alliance. To receive this information automatically, you can subscribe to their newsletter here.
Contact BMBC.Skopje@GMail.com for further information.