Article
Guide to transfer of NPLs 2016
Deloitte Legal Central Europe
The debt sales market in Central Europe is gaining momentum. The improving economic situation is attracting NPL investors to debt purchasing in the CE region due to the expectations of higher recovery rates, which suggests a favorable habitat for distressed debt sales.
At the same time, banks are looking for opportunities to reduce risk-weighted assets and the amount of capital they must hold against non-performing loans so that they can increase their new lendings to customers with better credit quality
DCE Legal Guide to transfer of NPLs
Whereas NPL transaction activity is growing in the CE region, familiarity with the legal specifics of NPL transfers in various jurisdictions can help investors safely conduct businesses outside their home countries. In this context, we have released the “DCE Legal Guide to transfer of NPLs”. The document includes country-specific information provided by Deloitte Legal member firms in Central Europe, and covers transferability of NPLs, capacity requirements on the buy side, means of transfer and borrowers’ consent issues, transfer of collaterals, banking secrecy and personal data protection aspects. This guide is intended as a useful tool for helping investors and banks understand the key legal issues relevant in NPL transactions.
(PDf, in English, 68 pages)
Key topics
- Transferability of NPLs
- Capacity requirements on the buy side
- Means of transfer and consent of the borrower
- Security transfer
- Bank secrecy and data protection