New NPL Law in Germany

New NPL Law in Germany: German Secondary Credit Market Act – Revitalization of the Non-Performing Loans Market and Creating New Market Opportunities?

On 30 December 2023 the German Secondary Credit Market Promotion Act (Kreditzweitmarktförderungsgesetz) entered 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.