The decree-law issued by the government transposes Directive (EU) 2021/2167, which standardizes the access to and the management of non-performing banking credits and sets requirements for credit purchasers.
Portugal missed the deadline for transposing this European directive, which was more than a year and a half overdue. Member States were required to adopt the legislative provisions by December 29, 2023, to implement the new guidelines starting December 30, 2023.
Due to the delay and failure to meet the European law requirements, the European Commission initiated legal proceedings against Portugal in 2024, subsequently filing a case in the European Court of Justice (ECJ) on February 12 of this year.
A week later, on February 20, the Portuguese government approved a directive at the Council of Ministers that harmonizes these rules.
At the time, the government stated that the changes are intended to develop the secondary market for trading loans deemed non-productive while ensuring that the sale of credits “does not harm the rights of customers (debtors).” The directive also allows credit managers to market non-performing loans in other markets.
In addition to Portugal, six other countries also delayed the transposition of the directive and faced similar proceedings initiated by the European Commission, with cases reaching the European Court of Justice.
On the same date that the community executive filed the case against Portugal, identical actions were filed against Bulgaria, Spain, Hungary, the Netherlands, Austria, and Finland.
