New NPL Law in Germany

German Secondary Credit Market Act – Revitalization of the Non-Performing Loans Market and creating new Market Opportunities?

On December 6, 2023 the German Secondary Credit Market Promotion Act (Kreditzweitmarktförderungsgesetz) enters into force, which simplifies dealing in non-performing loans (“NPLs“) by introducing a new law, the German Secondary Credit Market Act (Kreditzweitmarktgesetz). The Secondary Credit Market Act transposes EU Directive 2021/2167 on credit servicers and credit acquirers of 24 November 2021 (“Credit Servicer Directive“) into German law. This new law could significantly change the market for NPLs.