Estonia, EU – Baltic States, Financial Services, Legislation, Markets and Companies

"Business operators cannot and must not be in a situation where, in addition to having a strained cashflow as it is, they must credit the public sector interest-free. Small business operators in particular do not have free cash in their accounts or the possibility to obtain credit from a bank with a low interest rate to afford such luxury," Mart Meesak, small business operator and member of the council of EVEA, said in a press release on Monday.

According to EVEA, the whole business sector is in a difficult situation and whatever minor relief  measure or review of an old habit are very much needed. 

"Spending by the public sector in the current situation is welcome in several sectors, but the obsolete 28-day payment period is in no way justified anymore," the association said.

"Technologically, we have come to e-invoices in the public sector, which is a prerequisite for their handling to be faster and simpler. In addition, the public sector does not need a longer period of time for the execution of payments than the private sector, where payments depend in their turn on the payment terms of incoming payments. Speeding up payments by the public sector does not require separate additional resources, but will ease the stress for business operators," Meesak said.

EVEA Vice President Marina Kaas said that the initiative by the association was not meant just for the period of crisis. EVEA together with its sister organizations from other member states of the EU has sent a relevant proposal, titled "Pay in 7 Days," to European Commission President Ursula von der Leyen.

"We sincerely hope that it will become Europe-wide practice soon and that Estonia can serve as an example in this. Fast payment of invoices is a simple but practical step that every public sector organization can take to help the economy out of the coronavirus crisis and support small business also after the crisis," Kaas said.

EVEA is awaiting feedback from all public sector institutions that are prepared to join the initiative.