On 24 March 2023, a bill of law aiming, inter alia, at
transposing Directive (EU) 2021/2167 on credit servicers and credit
purchasers ("NPL Directive") into Luxembourg law
("Bill") was submitted to the Luxembourg
Parliament. The Bill purports to create a legal framework for the
transfer of non-performing loan agreements
("NPL") and a new category of
professionals of the financial sector
("PFS"), the credit servicers.
What's new?
The NPL Directive establishes a European framework for the
transfer of a creditor's rights under an NPL or of the NPL
itself (together, "transfer of NPL"). It
allows credit institutions to offload NPLs that weigh on their
balance sheet, thereby increasing overall financial stability and
fostering new lending activity.
