Serbia govt adopts bill to fight late payment

The law introduces penalties for state officials or company managers for breaking the law, ranging from 15,000 dinars ($171/133 euro) to 150,000 dinars, the Serbian government said in a statement on Friday.

The government has so far been the biggest perpetrator of corporate insolvencies and the law should induce discipline of payments, increase liquidity in the economy and reduce costs, Serbian finance minister Mladjan Dinkic said, adding that "the law will be a real shock therapy for our financial and economic system."

A couple of additional bills have been adopted, all of which will have an effect on financial stability and fiscal consolidation, the statement added.

(1 euro=112.4956 Serbian dinars)