Government departments, councils and other official bodies which don’t pay their bills within 30 days will face interest charges of 8% and an administrative fine of €40 from this summer, the economic affairs ministry has decided.

European measures to speed up bill-paying are due to come into effect in 2013 but minister Maxime Verhagen wants companies to benefit now, a spokesman for the minister told the Financieele Dagblad.
According to the association of credit managers (VCMB), large organisations can stretch payments out to as much as 120 days. The government emerges as the slowest payer in several surveys.