A public consultation process on how to implement an EU directive on the market for banks’ non-performing loans has now opened.

The directive lays down a common European framework for the transfer and management of non-performing loans that are transferred or sold after 29 December 2023, while at the same time safeguarding borrowers’ rights.

The directive was agreed in 2021, and has to be transposed by December 2023.

Discretion

It provides for a new EU-wide authorisation and regulatory framework for credit servicers to be overseen by national competent authorities – the Central Bank in Ireland’s case – and allows authorised entities to passport credit-servicing activities across the EU.

The EU rules, however, allow member states some discretion on aspects of the directive when transposing it into national law.

Minister for Finance Michael McGrath (pictured) said that he would take into account submissions received as part of the consultation process when taking decisions on these discretions.

The process is open until 8 March.