New: Secondary Credit Market Act ( KrZwMG)

On 30 December 2023 the Secondary Credit Market Act (Kreditzweitmarktgesetz , "KrZwMG”) was enacted implementing the EU directive 2021/2167 from 24 November 2021. The new legal framework shall help credit institutions to sell non performing loans in an efficient and transparent secondary market.

Area of application

The KrZwMG is only applicable to non-performing loans (“NPLs”) that were originally granted by a credit institution and in which case the first acquisitions and/or transfer occurred after 30 December 2023. The definition of an NPL is laid down in Article 47a of Regulation (EU) No. 575/2013 and generally claims that are overdue for more than 90 days are considered NPLs.