Introduction

In Romania’s rapid and increasingly active business market, the fast and efficient recovery of debt has become extremely significant for creditors. Delays in payment can markedly obstruct their business and the opportunities to develop it further. In the fast-moving world of business, Romania’s market must have all the elements required to be a worthwhile place to invest for foreigners, and that requires an efficient procedure for debt recovery.

Government Emergency Ordinance no.119/2007 concerning measures to combat late payments in commercial transactions (hereinafter referred to as the “GEO no.119”), published in the Official Gazette no.738/31.10.2007, was presented by the Romanian authorities as a significant step-forward in solving the problem of recovering debts by creditors. By adopting GEO no.119, the Romanian government fulfilled its obligations as a European Union (“EU”) member, by transposing into judicial procedures the provisions of the Directive no.2000/35/CE issued by the European Parliament and the Council in the same area.

Transposing the legislation at the EU level into Romania’s national order and fulfilling its obligations as an EU member state are positive aspects attesting Romania’s commitment to EU objectives. Of course, what business needs is the mechanism to overcome the practical obstacles it faces daily, among them being able to swiftly recover commercial debt.

Debt recovery in Romania

Debt recovery in Romania is basically achieved utilizing the procedures set forth in the Romanian Civil Procedural Code. However, as a result of the substantial increase in business transactions in Romania, such routine procedures have become burdensome for creditors, who actually waste a lot of time and money in a long and often non-rewarding process.

According to the usual procedures, credito