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ARTICLE · 22 JULY 2024

New Regime Relating To Non-Performing Loans

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The law of 15 July 2024 on transfer of non-performing loans (the "Law") was published in the Official Journal of the Grand-Duchy of Luxembourg. It aims at implementing Directive (EU)...

LuxembourgFinance and Banking
Aurélia Viémont
Aurélia Viémont
Sarah Hantscher
Sarah Hantscher
Mélanie Poirrier
Mélanie Poirrier
Vivian Walry
Vivian Walry
Zornitsa Dimitrova
Zornitsa Dimitrova
Charlotte Demeuldre
Charlotte Demeuldre
Anne Picot-Guillot
Anne Picot-Guillot
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The law of 15 July 2024 on transfer of non-performing loans (the "Law") was published in the Official Journal of the Grand-Duchy of Luxembourg. It aims at implementing Directive (EU) 2021/2167 on credit servicers and credit purchasers into Luxembourg law. The Law primarily sets out a legal framework enabling the transfer of non-performing loans (the "NPLs") from bank's balance sheets therefore achieving the creation of a secondary market for NPLs. It also creates 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 (the "FSL"). Finally, it also strengthens the current legal framework regarding notably consumer and mortgage credit agreements by way of amendments to existing laws.

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