Trade credit insurance provides protection against the risk of default that may arise in domestic or international trade relations. Whether it is the provision of goods or services with payment on due date, trade credit insurance can protect the lending company against losses that result if customers (debtors) stop paying.

Trade credit insurance provides protection to economic agents against the specific risks of export activities, thus contributing to the promotion of the export activities of their home country, the market penetration of domestic products and the provision of support to economic agents for increased competitiveness and export security in foreign markets.

Export credit insurance has the following characteristics:

• the policyholder may be the exporter or its bank;
• the exporter must be a resident of the country;
• as a rule, the objects of the export activity and the insurance services are local goods and services;
• the policyholder may also be a bank or a financing institution based in the country;
• credit is granted with the condition of taking out the insurance.

Export credit insurance is an optional insurance. Companies are not legally required to take out such insurance.

In order to promote the competitiveness of the business environment and to strengthen the functioning of the Romanian market, as an integral part of the EU internal market, efficient mechanisms are required to combat late payments in the execution of obligations stemming from contracts concluded between professionals and between professionals and contracting authorities.

Law No 72 of 28 March 2013 on measures to combat late payment in the execution of certain obligations stemming from contracts concluded between professionals and between professionals and contracting authorities, as subsequently amended and supplemented, was adopted in order to regulate and to combat late payment in commercial transactions.
This law regulates the accrual of late payment interest by claims consisting of the price of the goods supplied or fee for the services provided and establishes the statutory late payment interest and recovery costs for claims.

Law No 365 of 7 June 2002 (**republished**) on electronic commerce, as subsequently amended and supplemented, lays down the conditions for provision of information society services and classifies as criminal offences certain acts committed in connection with the security of domains used in electronic commerce, the issue and use of electronic payment instruments and the use of identification details in order to perform financial operations, with a view to ensuring a framework that is favourable to free movement and secure development of those services.

The provision of information society services by natural or legal persons is not subject to any prior authorisation and observes the principles of free and fair competition, in accordance with the legal rules in force.

Validity, legal effectiveness and proof of contracts concluded by electronic means:

• contracts concluded by electronic means have all the effects that the law recognises for contracts, provided the legal requirements for their validity have been satisfied;
• the prior consent of parties to the use of electronic means is not required for the validity of contracts concluded by electronic means;
• proof of conclusion of contracts by electronic means and of the obligations stemming from these contracts is subject to ordinary law on proof and to Law No 455/2001 on electronic signatures, as subsequently amended and supplemented.

Professional or commercial non-governmental associations and organisations, or those established for protecting consumers, minors or disabled persons, may draw up their own codes of conduct in order to ensure the proper application of Law No 365 of 7 June 2002 on electronic commerce.

The Consumer Code regulates the legal relationship between economic operators and consumers with regard to purchase of goods and services, including financial services, providing the necessary framework for access to goods and services, giving consumers complete and accurate information about the essential characteristics of those goods and services, protecting them and ensuring their rights and legitimate interests against abusive practices, and allowing them to participate in the basis for and making of decisions of interest for them as consumers.

Costs for claims can also be recovered from natural and legal persons by relying on the services of a debt collection company.

You can find the list of entities carrying out debt collection registered with the National Consumer Protection Authority here.

Pursuant to Government Emergency Order No 52/2016, as subsequently amended and supplemented, debt collection companies are permitted to perform certain actions, while being subject to certain prohibitions when it comes to contacting debtors and communicating with them.

Pursuant to Law No 188 of 1 October 2000 (*republished*) on bailiffs, as subsequently amended and supplemented, their duties also include the amicable recovery of costs for any debt claimed.

Bailiffs pursuing their activity in Romania are members of the National Union of Bailiffs (UNEJ).

UNEJ is a professional organisation with a legal personality, comprising all the bailiffs in Romania appointed by the Minister for Justice in accordance with the law, functioning with a self-regulated structure, operations and management.