Directive 2019/1023 of 20 June 2019 on preventive
restructuring frameworks, on discharge of debt and
disqualifications, and on measures to increase the efficiency of
procedures concerning restructuring, insolvency and discharge of
debt, and amending Directive (EU) 2017/1132 ("Directive on
restructuring and insolvency")
The overall objective of the directive is to reduce the most
significant barriers to the free flow of capital stemming from
differences in member states' restructuring and insolvency
frameworks, and to enhance the rescue culture in the EU based on
the principle of second chance. The new rules also aim to reduce
the amount of non-performing loans (NPLs) on banks' balance
sheets and to prevent the accumulation of such NPLs in the future.
In doing so, the Directive aims to strike an appropriate balance
between the interests of the debtors and the creditors.
