Factoring enabling regulations for public procurements

Taking into account the conditions of the existing bank guarantee schemes for participation in public procurement, companies with limited financial access avoided participating in public procurement tenders in many cases, as they were able to receive the funds under the bid only after the acceptance-handover. The problem was more pronounced for companies producing textile, furniture and similar products who have to buy raw materials to fulfill the order. Within the framework of the reform, changes defining the relationship between the state and the bank were presented in the framework of factoring, which from now on allows the business to receive the money immediately from the bank through factoring after winning the state purchase tender, ceding its right to receive money from the state to the bank.