On Mar. 24, CHI GVT issued regs on securing payments to SMEs.
CHI GVT issued Regulations on securing payments to small and medium enterprises.
Payments to SMEs
Ensures timely payment to SMEs by government agencies, public institutions, and large enterprises to protect their lawful rights and improve the business environment.
It applies to contracts involving procurement of goods, projects, services from SMEs.
Government agencies must pay SMEs within 30 days (or up to 60 if agreed); large enterprises must pay within 60 days without tying payment to third-party settlements.
Payments cannot be delayed for internal issues or non-contractual reasons, and SMEs cannot be forced to accept non-cash methods unless mutually agreed upon.
Bank-issued guarantees must be accepted and refunded on time; overdue payments will incur interest based on the 1-year loan prime rate or default rate of 0.05% daily.
Overdue payments must be disclosed annually by Mar. 31 for agencies and in reports for large firms; complaints are handled via a national platform within 30 to 90 days.
Retaliation against SMEs for filing complaints is strictly prohibited; authorities must oversee compliance, with violations leading to penalties, blacklisting, or restrictions.
FIs are urged to boost SME credit using receivables as collateral, with 30-day debt confirmation; enterprises, officials responsible for violations may face penalties.
