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ARTICLE · 25 OCTOBER 2024

How Are Luxembourg Securitisation Vehicles Affected By The NPL Law?

CMS Luxembourg
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On 12 July 2024, the Luxembourg Parliament adopted the draft bill No. 8185 (the NPL Law) transposing Directive (EU) 2021/2167 regarding credit servicers and credit purchasers entered into force on 28 December.

LuxembourgFinance and Banking
José Ocaña
José Ocaña
Aurélien Hollard
Aurélien Hollard
Julie Pelcé
Julie Pelcé
Stamatina Stylianopoulou
Stamatina Stylianopoulou
Julien Robert
Julien Robert
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On 12 July 2024, the Luxembourg Parliament adopted the draft bill No. 8185 (the NPL Law) transposing Directive (EU) 2021/2167 regarding credit servicers and credit purchasers entered into force on 28 December 20211. The NPL Law provides an adequate framework for credit institutions to address non-performing loans (the NPLs) on their balance sheets and reduce a potential risk of future NPL accumulation. Additionally, it introduces new categories of service providers which will be subject to authorisation requirements under the law of 5 April 1993 on the financial sector, as amended.

(To delve deeper into this topic and learn about all the new developments introduced by the NPL Law, please refer to our previous publication, of our banking team).

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