The Directive (EU) 2021/2167, a regulatory framework targeting non-performing loans, is set to be implemented by Member States by 29 December 2023. Among these countries, Germany has already taken significant steps towards this goal with the publication of the draft bill of the Credit Secondary Markets Act (Referentenentwurf Kreditzweitmarktgesetz) on 20 July 2023.
This proposed legislation poses significant implications for the non-performing loans (NPL) market in Germany, calling for the implementation of distinct changes to several existing German acts. Notable among these acts is the German Banking Act (Kreditwesengesetz), which is facing significant amendments under the new bill.
However, the changes proposed venture well beyond mere amendments to current acts. The draft bill proposes the inception of entirely new legal frameworks that will significantly alter the landscape of the NPL market in Germany.
As we approach the deadline for the implementation of this directive, it is of paramount importance for legal professionals, particularly those operating within corporate law or significant financial institutions, to stay informed about these impending changes.
The full analysis of these proposed changes can be accessed here, compiled by the team at White & Case LLP.