LEGAL ALERT

Albania Amends Its Late Payment Rules for Commercial Debts

WHAT CHANGED

Law No. 81/2026 gives creditors automatic late-payment interest, without a reminder, once statutory conditions are met. For business-to-business transactions, the default period is 30 days and contractual payment periods may exceed 60 days only by express agreement and if not manifestly unfair. Where a public authority is the debtor, the contractual period is 30 days and may be extended to a maximum of 60 days only by express agreement.

The amendments apply only to contracts and commercial transactions concluded after entry into force. The public-authority deadlines begin to apply six months later. Uncontested enforcement orders must be issued by the court within 90 calendar days of the application.

WHO IS AFFECTED

Any business contracting on credit terms in Albania, on either side of the transaction. Particularly relevant to suppliers to larger counterparties and to public authorities, to construction and supply chains, and to any business whose standard terms set payment periods.

WHAT TO DO

• Review standard terms and existing contracts against any revised maximum payment periods.
• Recalculate the statutory interest position on outstanding receivables if the rate formula has changed.
• Where you are the debtor, check whether terms previously compliant now risk being treated as grossly unfair.
• Establish whether the amendments apply to contracts concluded before commencement or only to new ones.