Five months after the new rules for credit managers came into force, the non-performing loan (NPL) market is finally showing signs of life, with the first portfolio of the year being ‘officially put on the market’ by 321 Crédito.
Since the new rules for credit managers came into force in December 2025, only five entities have so far obtained authorisation from the Bank of Portugal to operate. This is why the NPL market has virtually ground to a halt during this period and why the first portfolios of the year are only now beginning to be launched.
“Everyone is sorting out the paperwork so that [non-performing loan] processes can resume,” a market source told ECO. This information was corroborated to the newspaper by another source: “nothing new, just the issue of servicers being approved by the Bank of Portugal”.
Finsolutia, one of the major market operators with over €10 billion under management, was the most recent NPL manager to be authorised by the regulator. Previously, four other entities had already received the “green light” to carry out credit management activities in Portugal: Servedebt, Duo Capital, Soligest and the German firm Global Loan Agency Services.
It should be noted that the new regime for the assignment and management of bank loans came into force on 10 December, following the transposition of a European directive, bringing clearer rules for the sector and greater protection for debtors. In addition to mandatory registration, which subjects credit managers to strict criteria regarding suitability, experience and financial capacity, the new rules have banned practices involving harassment or coercion of customers.
Although the market has virtually stagnated, the regime came into force at a relatively quiet time for the banking sector, which is seeing NPL at historic lows, and also for bank customers, given economic growth and a robust labour market.
Only now is the market beginning to receive the first deals of the year: 321 Crédito has just launched ‘Project Boavista 3’, an unsecured loan portfolio worth €28 million, with the deal being organised by Alantra. A market source indicated that the transaction is scheduled to close in September, so no difficulties are anticipated regarding the registration of servicers. More portfolios from major banks are expected in the coming months.
The national system’s NPL ratio fell from a peak of 17.5% in 2015 to just over 2% at the end of last year, according to the latest data from the banking supervisor.
Source: ECO | Author: Alberto Teixeira
Edition and translation: Prime Yield
Image: by wsdamiao from Pixabay