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By Jonathan HUG and Antoine KREMER, ABBL
The draft Directive on the secondary market for non-performing loans (NPLs) aims to develop a secondary market for credit agreements initially issued by banks and qualified as non-performing.
In concrete terms, third parties (credit buyers) will be able to buy these NPLs throughout the European Union. Credit buyers (e.g. investment funds) will not create new credits, but will buy existing NPLs at their own risk. Therefore, they will not need a special authorisation but will have to comply with the applicable legal requirements.
Credit servicers
Credit servicers are legal persons who act on behalf of credit buyers and manage the rights and obligations...
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