The President has signed a new law abolishing the principle that monetary obligations in Poland must be carried out in Polish zlotys.
The legislation will come into force 30 days after the date of its publication.
The changes will:
- enable Polish entities to specify amounts to be paid and effect payment in a foreign currency
- entitle the debtor to make payments in Polish zlotys even if the amount of the receivables is expressed in foreign currency, unless otherwise required (by contractual stipulation, statutory regulation or binding court decision) to make payment in that foreign currency
- require the value of foreign currency (in the absence of any contractual or other binding obligation to the contrary) to be calculated at the average foreign exchange rate announced by the National Bank of Poland prevailing on the date payment becomes due and payable
- enable a party to demand, where the other party has defaulted on a payment, that payment be made in Polish zlotys at the average foreign exchange rate announced by the National Bank of Poland prevailing on the scheduled due date
It will also no longer be necessary to obtain a foreign exchange permit for specifying and effecting payments in the foreign currency.
Law: amendment to the Polish Civil Code and the Foreign Exchange Act
This article was written for Law-Now, CMS Cameron McKenna's free online information service. To register for Law-Now, please go to www.law-now.com/law-now/mondaq
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The original publication date for this article was 17/12/2008.
