On August 13, the President of Portugal signed into law a new decree transposing EU Directive 2021/2167 into national legislation. The directive standardizes the rules for managing non-performing bank loans and sets requirements for credit purchasers.

Portugal missed the EU’s deadline for implementation — December 30, 2023 — prompting the European Commission to launch an infringement procedure. The case was referred to the European Court of Justice (ECJ) on February 12, 2024. Just a week later, the Portuguese government approved the long-delayed legislation in a Council of Ministers meeting.

The law aims to boost the secondary market for non-performing loans (NPLs) while ensuring that credit sales do not infringe on borrowers’ rights. It also enables credit servicers to market NPLs in other jurisdictions.

Portugal is not alone in the delay: six other EU countries — Bulgaria, Spain, Hungary, the Netherlands, Austria, and Finland — are also facing legal action for failing to implement the directive on time.

Original Story: Observador | Author: Lusa
Edition and translation: Prime Yield